As the number of firms changes the market supply curve shifts. When the number of firms increases the market supply curve shifts to the right. On the other hand, if the number of firms decreases, the market supply curve shifts to the left.
Correct option is (D) none
Let number be x.
\(\therefore\) x + 20% of x = 42
\(\Rightarrow\) \(x+\frac{20x}{100}=42\)
\(\Rightarrow\) \(x+\frac x5=42\)
\(\Rightarrow\) \(\frac{6x}5=42\)
\(\Rightarrow\) \(x=42\times\frac56\) \(=7\times5=35\)
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