Creative Destruction by Innovation Means

question 73

Multiple Choice

Creative destruction by innovation means

• A)destruction of an innovative product once it fails in the market.
• B)introduction of an innovative product makes older substitute goods obsolete.
• C)substitute goods make innovative goods less competitive in the market.
• D)introduction of innovative goods increase the competition in the market

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Definitions:

Output Maximization

Output maximization refers to a strategy employed by firms to adjust their production in order to produce the maximum number of goods or services, given their resources.

Prisoners' Dilemma

A scenario in game theory in which two individuals acting in their own self-interest do not produce the optimal outcome, highlighting the conflict between individual benefit and collective benefit.

Self-Interest

Self-Interest is a person's own personal gain or advantage in making decisions or performing actions, often considered as the driving force behind economic activities.

Confess

To admit or acknowledge something reluctantly, often about a wrongdoing or mistake.