Asked by Gabriel Matar on May 09, 2024
Verified
The process by which new firms and new products replace existing dominant firms and products is called:
A) monopolistic competition.
B) the inverted-U process.
C) process innovation.
D) creative destruction.
Creative Destruction
The process through which new innovations lead to the demise of older technologies or industries, driving economic growth through continuous evolution.
Dominant Firms
Companies that hold a major portion of market share in their industry, influencing market conditions.
New Products
Items that have been recently introduced to the market, offering new features, benefits, or technological advancements.
- Understand the principle of creative destruction and its importance in the development of markets and businesses.
Verified Answer
WA
Whitnee AbrielMay 14, 2024
Final Answer :
D
Explanation :
The term "creative destruction" was coined by economist Joseph Schumpeter to describe the process by which new innovations and ideas disrupt existing markets and destroy the dominance of established firms and products. This process ultimately leads to economic growth and progress, but can also cause disruption and job losses in the short term.
Learning Objectives
- Understand the principle of creative destruction and its importance in the development of markets and businesses.