Reasons why economic profits are short-lived


Problem: There are indeed several reasons why economic profits are short-lived: new-entrants with the same strategy, competitive reaction by producers of differentiated products, and close enough substitutes, etc. So that I can remember something that is conceptually simple, I would like to see a description in graphical terms of the mechanism by which profit is reduced to zero, in other words, how do I explain it in terms of demand curve and supply curve?

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Microeconomics: Reasons why economic profits are short-lived
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