Technological Substitution Occurs When

question 85

Multiple Choice

Technological substitution occurs when:

• A) customers establish a new technological standard or dominant design.
• B) customers purchase new products to replace older technologies.
• C) a new dominant design prevents a company from competitively selling its products.
• D) a new technological design or process becomes the accepted market standard.

---

Definitions:

Profit-Maximizes

A strategy or behavior exhibited by firms aiming to achieve the highest possible profits by adjusting their production levels, prices, and cost structures.

Profit-Maximizing

The tactic or plan of altering production levels and pricing to attain the greatest possible profit.

Incur a Loss

To experience a negative financial result from business operations, investments, or other economic activities.

Economic Profits

The difference between total revenue and total cost, including both explicit and implicit costs, representing the additional amount earned above the next best alternative.