Firm entry, exit, and the shut-down rule

Firms' decisions to enter or exit a market depends on whether or not a firm can make a profit. Learn about the conditions under which firms enter and exit markets, and when to shut down, in this lesson

Shutting down or exiting industry based on price

Long-run economic profit for perfectly competitive firms

Long run supply when industry costs aren't constant

Free response question (FRQ) on perfect competition

Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market