Question

If walter's costs are typical in the industry, we would expect that in the long run multiple choice new firms would enter the market for watches, the price would rise, and each individual firm in the industry would produce more watches. new firms would enter the market for watches, the price would fall, and each individual firm in the market would produce fewer watches. the number of firms in the market for watches would remain the same, the price would remain the same, and each individual firm in the industry would continue to produce the same amount of watches. firms would exit the market for watches, the price would rise, and each remaining firm in the industry would produce more watches.

1) new firms would enter the market for watches, the price would rise, and each individual firm in the industry would produce more watches.
2) new firms would enter the market for watches, the price would fall, and each individual firm in the market would produce fewer watches.
3) the number of firms in the market for watches would remain the same, the price would remain the same, and each individual firm in the industry would continue to produce the same amount of watches.
4) firms would exit the market for watches, the price would rise, and each remaining firm in the industry would produce more watches.

Answer 1

In a perfectly competitive market, if Walter's costs are typical in the industry, new firms would enter the market for watches, the price would fall, and each individual firm in the market would produce fewer watches.

Step-by-step explanation:

In a perfectly competitive market, if Walter's costs are typical in the industry, we would expect that in the long run, new firms would enter the market for watches, the price would fall, and each individual firm in the market would produce fewer watches. This is because as new firms enter the market, the supply of watches increases, leading to a decrease in price. With more firms competing for customers, each individual firm produces fewer watches to maintain their market share.