How is position determined? And does this imbalance the ratings?

I notice that in Silver it is not uncommon for a lot of people to lose in round 1 of BR countries and it seems they are all given a placement of 10th (my rating change is given immediately once eliminated even before others have even finished guessing), leading to a large net negative in rating among all 10 participants. Doesn't this lead to a downward trend to ratings over time? (especially for low ranks where this is more common?).

For example, if only 3 people people survive round 1 in a 10 person game, shouldn't the other players all be assessed 7th place to keep the ratings balanced?

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