Assume there is an increase in the number of consumers in the market for a good sold by perfectly competitive firms that are initially producing the profit-maximizing level of output.For the individual firm,this would result in:

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An increase in the number of consumers leads to higher demand. In a perfectly competitive market, this results in a higher equilibrium price and quantity, allowing firms to increase both price and the profit-maximizing quantity of output.

Assume There Is an Increase in the Number of Consumers