According to the theory of creative destruction, the greatest threat to a monopolist producer of electric typewriters is likely to be
A) government regulation
B) international competition
C) the entry of new electric typewriter producers
D) growth in the computer industry
E) stockholders demanding increased efficiency

Question

Quizplus · Accepted Answer

The theory of creative destruction, introduced by economist Joseph Schumpeter, suggests that the greatest threat to existing businesses, including monopolists, comes from new technologies rendering old ones obsolete. In this case, the growth in the computer industry represents a technological advancement that could displace electric typewriters, making it the greatest threat to a monopolist in that sector.

According to the Theory of Creative Destruction, the Greatest Threat