Creative Destruction Is Not Automatic Because

question 104

Multiple Choice

Creative destruction is not automatic because

• A) there are major obstacles to the entry of new innovative firms into concentrated industries.
• B) consumer tastes are highly unstable.
• C) corporate takeovers increase dynamic competition.
• D) large firms rarely are technologically progressive.

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Definitions:

Drive-Reduction

A theory of motivation that posits that behavior is driven by the need to reduce internal states of tension caused by unmet biological needs.

Incentive

A factor that motivates or encourages someone to do something, often linked to rewards or punishments.

Optimal Level

Pertains to the most favorable or advantageous level or stage of a process, activity, or variable.

Drive Reduction

A theory in psychology suggesting that motivation arises from the desire to reduce internal tension caused by unmet biological needs, such as hunger or thirst.