Product innovation contributes to technological advance primarily by
A)decreasing allocative efficiency.
B)increasing allocative efficiency.
C)decreasing productive efficiency.
D)increasing productive efficiency.

Question

Quizplus · Accepted Answer

Product innovation contributes to technological advance primarily by increasing allocative efficiency. Allocative efficiency refers to the efficient allocation of resources to maximize consumer satisfaction. Product innovation can lead to the development of new products that better meet consumer needs, which can increase allocative efficiency.

Product Innovation Contributes to Technological Advance Primarily by