Q. 165.0( 3 Votes )
How does an incre
The increase in number of firms will shift market supply curve towards right.
Increase in price of input will increase the cost of production and the marginal cost of the firm. So the marginal cost curve will shift upward to the left and supply curve will also shift upward to do the left.
Therefore increase in output price will negatively affect the supply of the firm.
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