In a perfectly competitive market, if firms start exiting due to losses, what will happen to the market's long-run equilibrium price once adjustments are complete?

In a perfectly competitive market, when firms are experiencing losses, some will decide to exit the market. As these firms leave, the total supply of the product decreases, which puts upward pressure on the market price. Eventually, this increase in price continues until the remaining firms can cover their costs and earn normal profits. In the long run, the market will reach a new equilibrium price that is higher than the initial price but low enough that the remaining firms are willing to stay in business. For example, if a market for apples sees several farms closing due to losses, the reduced supply will lead to higher apple prices, stabilizing at a point where the remaining farms can operate profitably.