Final answer:
An increase in the number of producers results in an increase in market supply, as this represents the sum of all individual suppliers' supply curves, attracting new firms and expanding the supply until profits are leveled.
Step-by-step explanation:
An increase in the number of producers will increase the market supply, because market supply is the sum of all individual supply curves. This is based on the understanbbding that market supply represents the total quantity of a good or service that is available to consumers, provided by the sum of all individual suppliers in the market.
According to economic principles, when there's a technological improvement that reduces production costs, there's an adjustment in the market. This leads to the entry of new firms as they are attracted by the higher profits experienced by existing firms, which ultimately increases the market supply. The process of new firm entry will continue until profits are normalized due to increased supply.
An increase in the number of producers will increase the market supply, because market supply is the sum of all individual supply curves. When firms enter the market, the overall supply of goods or services increases, leading to a higher market supply. The market supply is not dependent on each supplier having an identical supply curve, as different firms may have different production costs and capabilities.