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Explain Why the Concept of a Dominant Design Is Important

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Essay

Explain why the concept of a dominant design is important to entrepreneurship.


Definitions:

Long-Run

A period of time in which all factors of production and costs are variable, allowing for full adjustment to changes.

Marginal Revenue

The increase in revenue from the sale of one more unit of a product or service.

Natural Monopoly

A market situation where a single supplier can provide a good or service more efficiently than any potential competitor, often due to high initial setup costs.

Local Phone Company

A telecommunications company that provides phone services primarily within a local or regional area.

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