When Incremental Improvements Are Made to a Dominant Technological Design

question 23

Multiple Choice

When incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version,____________ is said to have occurred.

• A) a milestone
• B) intuitive change
• C) generational change
• D) coercive change
• E) discontinuous innovation

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Definitions:

Favorite Bundle

An individual consumer's most preferred combination of goods and services, given their budget and prices.

Indifference Curve

A graph showing different combinations of two goods among which a consumer is indifferent, depicting levels of consumption where the consumer has no preference for one bundle over another.

Absolute Values

Mathematical values expressed without regard to their sign; distances from zero on the real number line.

Favorite Bundle

The combination of goods and services that maximizes a consumer's utility given their budget constraint.