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INCREASE IN FIRMS                          INCREASE IN GOODS




                        Effect of
                      Entering the
                        Market!




                    DECREASE IN PRICES &
                         PROFITS
DECREASE IN FIRMS                          DECREASE IN GOODS




                       Effect of
                      Exiting the
                       Market!




                    INCREASE OF PRICES &
                          PROFITS

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Presentation of effects of entering and exiting the market

  • 1. INCREASE IN FIRMS INCREASE IN GOODS Effect of Entering the Market! DECREASE IN PRICES & PROFITS
  • 2. DECREASE IN FIRMS DECREASE IN GOODS Effect of Exiting the Market! INCREASE OF PRICES & PROFITS