Ellie and Brendan Both Produce Apple Pies and Vanilla Ice

question 20

True/False

Ellie and Brendan both produce apple pies and vanilla ice cream. If Ellie's opportunity cost of one apple pie is 1/2 gallon of ice cream and Brendan's opportunity cost of one apple pie is 1/4 gallon of ice cream, a mutually advantageous trade can be struck at a price of one apple pie for 1/3 gallon of ice cream.

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Definitions:

Continuous Innovation

Ongoing efforts to improve products, services, or processes, which can help organizations stay competitive and meet customers’ evolving needs.

Dynamically Continuous Innovation

Dynamically continuous innovation involves significant changes to existing products or processes, making improvements while not requiring consumers to learn entirely new behaviors.

Discontinuous Innovation

A type of innovation that creates a significant change and often creates a completely new market or drastically alters an existing one.

Continuous Innovation

The ongoing introduction of improvements and enhancements to products, services, or processes that add value to the organization and its stakeholders.