If the number of ﬁrms in the market increases, the equilibrium quantity of the product decreases given that demand remains unchanged.

Question

Quizplus · Accepted Answer

When the number of firms in the market increases, competition among firms typically increases, leading to more production and potentially lower prices, which can increase the equilibrium quantity of the product, assuming demand remains unchanged.

If the Number of ﬁRms in the Market Increases, the Equilibrium