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How Does an Increase in the Number of Firms in a Market Affect the Market Supply Curve? - Economics

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प्रश्न

How does an increase in the number of firms in a market affect the market supply curve?

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उत्तर

The market supply curve is a horizontal summation of all the supply curves of individual firms in the market. If the number of firms in a market increases, then the market supply curve will shift rightward as there will be more number of firms supplying more amount of output.

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