What Was One of the Main Criticisms of the Early

question 10

Multiple Choice

What was one of the main criticisms of the early models of the diffusion of innovations?

• A) They posited that diffusion was solely a matter of the readiness of the social system.
• B) They failed to take into account the influence of early adopters and their cultural norms.
• C) They did not consider the social capital of their participants.
• D) They focused too much on the machine as a tool.

---

Definitions:

WACC

Weighted Average Cost of Capital - a measure of a firm's cost of capital in which each category of capital is proportionately weighted.

WACC

stands for Weighted Average Cost of Capital, which is a calculation of a firm's capital cost from all sources, including equity and debt, weighted accordingly.

Capital Asset Pricing Model

A model used to determine the theoretical rate of return of an asset, considering risk and the time value of money.

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertook by investing their capital.