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As we know, profits in an industry with free entry can't survive the entry that will occur in the long run. As new
firms enter, this firm will find demand for its product falling.
Even a firm that began producing at capacity will be forced
to reduce production as new firms enter. As we see to the right,
entry forces the demand down to D2 for the existing firms product.
In the long run it will produce QLR, a quantity smaller than QC, capacity.
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