A process innovation refers to a change in the way a commodity or product is produced, which can lead to increased efficiency, cost savings, and/or improved quality in production processes. It does not necessarily involve major modifications of earlier products or the introduction of entirely new goods or services, and it is not expected to lead to an upward shift in the firm's average cost curve.

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A Process Innovation

Question 88

Multiple Choice

A process innovation

A) involves major modifications of earlier products.
B) involves changes the way in which a commodity is produced.
C) is the introduction of a good or service that is entirely new.
D) leads to an upward shift in the firm's average cost curve.

Correct Answer: