The Displacement of One Technology by Another,as Shown by Two

question 109

Multiple Choice

The displacement of one technology by another,as shown by two S-shaped curves on a graph,is referred to as

• A) economies of scope versus operating leverage.
• B) technology transfer.
• C) the R&D mix.
• D) technological discontinuity.
• E) a disjunctive learning or experience curve.

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Definitions:

Earnings Per Share (EPS)

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock.

EBIT

EBIT stands for earnings before interest and taxes, and it's a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Operating Leverage (DOL)

A measure of how revenue growth translates into growth in operating income, indicating the fixed versus variable costs of a business.

Variable Cost

A cost that changes in proportion with the level of output or activity.