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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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