As the number of firms in an industry increases,the residual demand curve becomes

Name: As the number of firms in an industry increases,the residual demand curve becomes
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Question

Quizplus · Accepted Answer

As the number of firms in an industry increases, the market becomes more competitive, and consumers have more options to choose from. This makes the demand curve more elastic, as consumers can easily switch to substitutes if firms increase their prices even slightly. Therefore, choice A is the correct answer.

As the Number of Firms in an Industry Increases,the Residual