The Firms Long-Run Decision to exit or enter a market A firm will enter the industry if such an action would be profitable ● Enter if TR>TC Enter if TR/Q>TC/Q ● Enter if p>ATC• A firm will enter the industry if such an action would be profitable. • Enter if TR > TC • Enter if TR/Q > TC/Q • Enter if P > ATC The Firm’s Long-Run Decision to Exit or Enter a Market