From potential firms to operating firms

Synthetic English narration.

Begin with potential firms
Start with fourteen potential firms in one market. All begin active. Which firms will continue operating?

Solve for the given set
Solve equilibrium for this given set. Compare each saved profit with the exit cutoff computed across the whole economy.

Apply the selected exits
Every firm here loses money, but only five are selected to exit. Removing those five leaves nine for the next solve.

Solve again; follow the economy
Solve the reduced set again. Nine firms remain here, while the whole economy continues through rounds two, eight and fifteen.

Check before deleting
Only two exits are proposed economy-wide. Two is below three: stop before deleting. Nine firms remain. Next, Cournot equilibrium.