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Question -

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



Answer -

(i) When the number of firms in the industry increases, market supply also increases due to large number of producers producing that commodity.
(ii) So, due to increase in market supply, the supply curve shifts rightward as shown.
┬а ┬а ┬а ┬а ┬а ┬а ┬а ┬а ┬а ┬а ┬а┬а

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