Pioneer Athletics Inc.wants to provide better landing mats for gymnasts.It therefore asks its foam suppliers to use a new innovative process to manufacture higher quality,durable foam for use in its mats.This new process used to develop the foam represents a(n)_____ for Pioneer Athletics.
A) network externality
B) preemption rent
C) enabling technology
D) incumbent rent

Question

Quizplus · Accepted Answer

The new process used to develop the foam represents an enabling technology for Pioneer Athletics because it allows them to create a higher quality and more durable foam for their gymnastic mats. This technology enables Pioneer Athletics to offer a better product to its customers and gain a competitive advantage over its rivals. Network externality, preemption rent, and incumbent rent are not relevant in this scenario.