The process by which new firms and new products replace existing dominant firms and products is called
A) monopolistic competition.
B) the inverted-U process.
C) process innovation.
D) creative destruction.

Question

Quizplus · Accepted Answer

The process by which new firms and new products replace existing dominant firms and products is called creative destruction. This term was coined by economist Joseph Schumpeter and suggests that innovation and entrepreneurialism leads to the destruction of old ways of doing things and the creation of new opportunities. Monopolistic competition is a market structure where many firms compete by selling differentiated products. The inverted-U process refers to the idea that as countries develop, they go through a period of increasing pollution levels, which peak at a certain point before starting to decline. Process innovation refers to the development of a new or improved production or delivery method for a product or service.

The Process by Which New Firms and New Products Replace