Question: Why does the entry of firms into an industry decrease the economic profits of the existing firms? Why does the exit of firms from an

Why does the entry of firms into an industry decrease the economic profits of the existing firms? Why does the exit of firms from an industry increase the economic profits of the existing firms?

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Why does the entry of firms into an industry decrease the economic profits of the existing firms? Why does the exit of firms from an industry increase the economic profits of the existing firms?

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