Which of the choices best describes the elimination principle? New firms enter the market when existing firms in the market are earning below-normal profits, and some existing firms exit the market when existing firms are earning below-normal profits. New firms enter the market when existing firms in the market are earning below-normal profits, and some existing firms exit the market when existing firms are earning above-normal profits. New firms enter the market when existing firms in the market are earning above-normal profits, and some existing firms exit the market when existing firms are earning above-normal profits. New firms will enter the market when existing firms in the market are earning above-normal profits, and some existing firms will exit the market when existing firms are earning below-normal profits.
Which of the choices best describes the elimination principle? New firms enter the market when existing firms in the market are earning below-normal profits, and some existing firms exit the market when existing firms are earning below-normal profits. New firms enter the market when existing firms in the market are earning below-normal profits, and some existing firms exit the market when existing firms are earning above-normal profits. New firms enter the market when existing firms in the market are earning above-normal profits, and some existing firms exit the market when existing firms are earning above-normal profits. New firms will enter the market when existing firms in the market are earning above-normal profits, and some existing firms will exit the market when existing firms are earning below-normal profits.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter9: Market Structure And Long-run Equilibrium
Section: Chapter Questions
Problem 1MC
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![Which of the choices best describes the elimination principle?
New firms enter the market when existing firms in the market are earning below-normal profits, and some existing
firms exit the market when existing firms are earning below-normal profits.
New firms enter the market when existing firms in the market are earning below-normal profits, and some existing
firms exit the market when existing firms are earning above-normal profits.
New firms enter the market when existing firms in the market are earning above-normal profits, and some existing firms
exit the market when existing firms are earning above-normal profits.
New firms will enter the market when existing firms in the market are earning above-normal profits, and some existing
firms will exit the market when existing firms are earning below-normal profits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2eb334d1-eea1-4da7-9551-e02858c96b00%2F8085a18e-737c-418d-bf75-4f2e60db272e%2Fc5eblq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the choices best describes the elimination principle?
New firms enter the market when existing firms in the market are earning below-normal profits, and some existing
firms exit the market when existing firms are earning below-normal profits.
New firms enter the market when existing firms in the market are earning below-normal profits, and some existing
firms exit the market when existing firms are earning above-normal profits.
New firms enter the market when existing firms in the market are earning above-normal profits, and some existing firms
exit the market when existing firms are earning above-normal profits.
New firms will enter the market when existing firms in the market are earning above-normal profits, and some existing
firms will exit the market when existing firms are earning below-normal profits.
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