According to the elimination principle:
A) above-normal profits are eliminated by exit.
B) below-normal profits are eliminated by entry.
C) there is a uniform rate of profit above the normal level in all competitive industries.
D) resources are always moving toward an increase in consumer welfare.

Question

Quizplus · Accepted Answer

The elimination principle suggests that resources move towards increasing consumer welfare by reallocating from less profitable to more profitable uses, thus eliminating inefficiencies.

According to the Elimination Principle