However, firms would make normal profits in the long run, as in perfect competition. For example, if existing firms have made economic profits, more firms may be attracted by the potential profits and may freely enter the market due to the ease of entry. As a result, firms that previously enjoyed economic profits lost some of their demand, thus continuing to reduce production and lose profits until all previous profits were eliminated. When existing businesses suffer losses in the short term, some of them may exit the market due to closure. Thus, each of the remaining firms would gain greater consumer demand, potentially increasing their production and long-run profits until previous losses are offset and profits normal