Creative destruction refers to the
A) withdrawal of investment from low-profit areas and activities for reinvestment in high-profit ones.
B) conversion and remodeling of old, decaying buildings into modern art facilities.
C) artistically destroying and knocking down old buildings and areas for new development.
D) removal of materials from old facilities for use in new construction to maintain links between old and new.
E) re-investment into low-profit areas.

Question

Quizplus · Accepted Answer

Creative destruction refers to the process through which new innovations and technologies replace old ones, leading to the elimination of established firms, industries, and products. This process is driven by shifts in consumer preferences, advancements in technology, and changes in market conditions, which require businesses to adapt or risk failure. During creative destruction, resources are withdrawn from low-profit areas and activities and redirected towards high-profit ones, which helps to increase productivity and economic growth. Therefore, choice A is the best option that captures the essence of the concept.

Creative Destruction Refers to the