The process by which new firms and new products destroy existing dominant firms and their products is called creative destruction.Learning Objective: 11-05 Discuss creative destruction and the profit incentives for innovation.Test Bank: I Topic: Technological Advance and Competition
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Q10: Marginal cost is a measure of the
Q14: Allocative efficiency is achieved by equalizing consumer
Q43: If for a firm P = minimum
Q56: The theory of creative destruction was advanced
Q58: In long-run equilibrium, purely competitive markets
A)minimize total
Q59: The process by which new firms and
Q60: Innovations that lower production costs or create
Q62: (Last Word) Eliminating patents would tend to
A)stimulate
Q63: If the entry or exit of firms
Q64: After all long-run adjustments have been completed,
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