Asked by Spencer Peyrot on May 08, 2024
Verified
Which of the following does not illustrate the idea of creative destruction?
A) Digital downloads have shrunk the market for CDs and DVDs.
B) Online retail sales have increased, while brick-and-mortar sales have slowed down.
C) The opening of a new mall reduces the traffic in another mall.
D) A firm has to destroy some of the expired products in its inventory.
Creative Destruction
is an economic concept that describes the process by which newer innovations replace outdated industries or products, driving economic growth.
Digital Downloads
The distribution of digital content such as music, movies, and software via the internet, without the use of physical media.
Online Retail Sales
The process of purchasing goods or services over the Internet, directly from retailers.
- Recognize and comprehend the concept of "creative destruction" along with its contribution to innovation and advancement in the market.
Verified Answer
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Francisco Butanda_26May 12, 2024
Final Answer :
D
Explanation :
Creative destruction refers to the process by which new innovations lead to the demise of older technologies or methods, making way for progress and efficiency. Options A, B, and C all describe scenarios where new developments or innovations negatively impact existing markets or establishments, fitting the concept of creative destruction. Option D, however, is about the routine disposal of expired products, which does not involve the replacement of old technologies or methods with new, innovative ones.
Learning Objectives
- Recognize and comprehend the concept of "creative destruction" along with its contribution to innovation and advancement in the market.