What Is the Term Used for the Process by Which

question 143

Multiple Choice

What is the term used for the process by which an entrepreneur creates or recognizes a new and better product, acquires it, and brings it to market, making older substitutes obsolete?

• A)creative destruction 
• B)innovation 
• C)the substitution effect 
• D)backward-bending innovation

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Definitions:

Marketing Costs

Expenditures associated with promoting, selling, and distributing a product or service, including advertising, market research, and sales force expenses.

Geographical Region

An area defined by natural or artificial features, political boundaries, or cultural characteristics that distinguish it from surrounding areas.

Limited-Function Merchant Wholesaler

A wholesaler that provides a limited range of services, focusing on specific functions like storage or delivery rather than comprehensive support.

Full-Function Merchant Wholesaler

A wholesaler that provides a range of services including stocking inventory, operating warehouses, and offering credit to retailers.