Asked by Nathan Perrine on Jul 05, 2024
Verified
The fact that the life expectancy of a U.S. business is rather short-just 10.2 years-is a reflection of the consequences of
A) competition and creative destruction.
B) producer and consumer surplus.
C) productive and allocative efficiency.
D) short-run and long-run equilibrium.
Life Expectancy
The average number of years a person is expected to live, based on statistical averages for a particular population or region.
Creative Destruction
a concept in economics which suggests that new innovations continually destroy old industries or practices, making way for new growth and advancements.
U.S. Business
Refers to commercial, industrial, or professional activities conducted within the United States aimed at generating profit or economic growth.
- Describe the theory and effects of creative destruction on market dynamics.
- Acknowledge the factors that shape the life span of U.S. enterprises and the consequences of rivalry.
Verified Answer
SY
Sonja YvetteJul 06, 2024
Final Answer :
A
Explanation :
The short life expectancy of U.S. businesses can be attributed to competition and creative destruction. This concept, introduced by economist Joseph Schumpeter, describes the process by which new innovations lead to the demise of older, less efficient businesses, thus fostering a dynamic and constantly evolving marketplace.
Learning Objectives
- Describe the theory and effects of creative destruction on market dynamics.
- Acknowledge the factors that shape the life span of U.S. enterprises and the consequences of rivalry.