Answer in all option 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 existingfirms 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 existingfirms 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 firmsexit 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 existingfirms will exit the market when existing firms are earning below-normal profits.

Option (a) is incorrect because it suggests that new firms enter the market when existing firms are…

Answered: Which of the choices best describes the…

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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