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Show the market and the firm for a scenario where there are initial profits and entry...

Show the market and the firm for a scenario where there are initial profits and entry of new firms pushes the firms to a long run equilibrium (as in my video)

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In above picture's diagram the scenario of market and firm's initial and long run situation are shown. Here the initial equilibrium point is E where the price is P and firms earns short run profit. In diagram SR Profit is the firms' short run profit. This profit attract new firms to enter into the market. As a result, the market supply increases from S to S1 and new long run equilibrium point is E1 where firms earns zero profit. Thus entry of new firms push the firms to long run equilibrium E1.

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