In a perfectly competitive market with 75 non-identical firms producing at market price p1

Question

Quizplus · Accepted Answer

In a perfectly competitive market, having more firms, especially non-identical ones, increases the diversity and flexibility of supply, making the supply curve flatter and more elastic. This is because with more firms, there's a wider range of production costs and responses to price changes, leading to a more elastic supply. If firms were identical, the supply curve would be less elastic because all firms would have similar costs and production capabilities, leading to a more uniform response to price changes.

In a Perfectly Competitive Market with 75 Non-Identical Firms Producing