As the number of customers increase
A)The number of firms will rise in the long run
B)The number of firms will fall in the long run
C)The number of firms will stay the same in the long run
D)It is impossible to tell from the information given

Question

Quizplus · Accepted Answer

As the number of customers increases, the demand for goods and services will also increase. This will lead to an increase in the number of firms in the long run, as more firms will be able to enter the market and make a profit.

As the Number of Customers Increase