I read that in a competitive market, if a significant number of manufacturers le

Question

I read that in a competitive market, if a significant number of manufacturers leave the market, it will have this effect:
* it will cause a reduction in the total number of units supplied to the market.
* It will cause each of the manufacturers that remain in the market, to supply more units to the market.
I don't understand how we can make assumptions like this.
With regard to the first assumption, why don't we assume that the remaining manufacturers will make up for the loss in supply?
With regard to the second assumption, why do we assume that all of them will make more units. Isn't it possible that some of them are limited in their resources, and cannot do so?

Is this perhaps a sloppy question, or is the problem with me?

Please help. Thank you.

Explanation / Answer

consider short run supply curve of a firm, at a given price they produce a fixed amount of good, when a no. of firms exit,whatever they produced at given price will be deducted,these will lead to increase in price, as price increase the firms will produce more( as produce of firm is given by MC= price) u r right in long run because more profit will drive new firms into the mkt and will come back to same price but we are asked in short run

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