Compare Disruptive and Sustaining Technologies

question 142

Essay

Compare disruptive and sustaining technologies.

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Definitions:

Total Fixed Cost

The sum of all expenses that remain constant regardless of the level of production or output within a business.

Average Fixed Cost

Calculated by dividing total fixed costs by the quantity of output produced, showing the fixed cost per unit.

Sunk Cost Fallacy

The misconception that future decisions should be influenced by previously incurred costs that cannot be recovered.

Marginal Cost-Benefit Calculations

The process of evaluating whether the additional benefits of an action or investment outweigh its additional costs.