In Order to Find New Ways to Open a Can

question 278

Multiple Choice

In order to find new ways to open a can, a group leader asks his team of inventors to think of "opening," in general, rather than asking them to come up with a better way to open a can. In doing so, this group leader will

• A)encourage creativity since he broadly defined the problem.
• B)discourage creativity because he defined the problem too broadly.
• C)encourage the use of mental sets, thus, encouraging creativity.
• D)prevent incubation of the problem, thus, discouraging creativity.

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Definitions:

Four-Firm Concentration

is a metric that measures the total market share held by the four largest firms within an industry, indicating the level of market concentration and competition.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market.

Oligopoly

A market structure characterized by a small number of firms whose decisions about production and pricing significantly affect the market.

Herfindahl Index

A measure of market concentration that sums the squares of the market share percentages of all firms within the industry, used to assess the level of competition.