The amount of cost cutting technical innovation introduced into a production process is a function of:
A)technology only.
B)technology and consumer acceptance.
C)consumer acceptance only.
D)none of the above.

Question

Quizplus · Accepted Answer

The amount of cost cutting technical innovation introduced into a production process is affected by both technology as well as consumer acceptance. Technology can provide new ways of reducing costs, but ultimately it is the acceptance of consumers that determines whether a particular innovation will be profitable for the firm. Therefore, both technology and consumer acceptance are important factors in determining the amount of cost cutting technical innovation in a production process. Choice A is incorrect because technology alone cannot determine the extent of innovation. Choice C is incorrect because consumer acceptance alone cannot determine the extent of innovation. Choice D is incorrect because there are factors, such as technology and consumer acceptance, that do affect the amount of cost cutting technical innovation in a production process.

The Amount of Cost Cutting Technical Innovation Introduced into a Production