Which of the Following Is the Discontinuous Innovation

question 9

Multiple Choice

Which of the following is the discontinuous innovation?

• A)Moving from four to six cylinder car engines
• B)Moving from CD to DVD music and entertainment systems
• C)Moving from small shops to self-service supermarkets
• D)Moving from sugar to artificial sweeteners in food products

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Definitions:

MR = MC

A condition in economics where marginal revenue equals marginal cost, often considered the point of profit maximization for firms in perfectly competitive markets.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of firms to adjust to market changes.

Perfectly Competitive Market

A theoretical market structure where many buyers and sellers trade homogeneous products, and no single participant can influence the price.

Marginal Costs

The price increase resulting from the creation of an additional product or service unit.