Asked by Sarah' Kay Belue on Jun 29, 2024
Verified
The process by which new firms and new products destroy existing dominant firms and their products is called creative destruction.
Creative Destruction
Creative destruction refers to the process through which new innovations lead to the demise of older technologies or business models, fostering growth and economic progress.
New Firms
Recently established companies or businesses entering a market.
Dominant Firms
Companies that hold a major portion of the market share in their industry, influencing market conditions and prices.
- Comprehend the principle of creative destruction and its importance in the dynamics of competitive markets.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
True
Explanation :
Creative destruction is described as the process by which new firms and new products disrupt and displace existing dominant firms and their products.
Learning Objectives
- Comprehend the principle of creative destruction and its importance in the dynamics of competitive markets.