Creative Destruction Is

question 265

Multiple Choice

Creative destruction is

• A)the process by which large firms buy up small firms.
• B)the process by which new firms and new products replace existing dominant firms and products.
• C)a term coined many years ago by Adam Smith.
• D)applicable to planned economies but not to market economies.

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Definitions:

Binomial Experiment

A statistical experiment that satisfies four conditions: fixed number of trials, independent trials, only two possible outcomes, and constant probability of success.

Binomial Probability Distribution

A statistical distribution that describes the probability of a variable adopting one of two separate values, contingent upon certain parameters or suppositions.

Defective Bulbs

Refers to lightbulbs that fail to meet the quality standards or specifications and do not function as intended.

Binomial Random Variable

A type of random variable that follows the binomial distribution, representing the number of successes in a fixed number of independent trials, each with the same probability of success.