Because of this, the firm faces a downward-sloping demand curve and its marginal revenue curve is a downward-sloping line that lies below the demand curve. If demand drops, you can be sure that the price will drop in the short term, with some restaurants closing and exiting the industry as easily as they entered. When addressing short-run and long-run equilibrium, the restaurant's short-run profits depend on how many other firms are in the industry. For example, if the number of restaurants in the industry is smaller (relative to the long-run equilibrium number of restaurants), then a typical monopolistically competitive restaurant will make a profit. But “too many” will dilute the industry, causing restaurants to lose money in the short term. Yet despite competition and economic uncertainty, the Cheesecake Factory has expanded nationally and internationally