The fact that the life expectancy of a US business is rather short-just 10.2 years-is a reflection of the consequences of
A) competition and creative destruction.
B) producer and consumer surplus.
C) productive and allocative efficiency.
D) short-run and long-run equilibrium.

Question

Quizplus · Accepted Answer

The short life expectancy of a US business is largely due to competition and creative destruction. This means that newer and more innovative businesses are often emerging and pushing out older businesses that are no longer able to keep up with the competition. This process can lead to a constantly changing market where businesses have to continually adapt or risk being left behind.

The Fact That the Life Expectancy of a US Business