Creative destruction is not automatic because
A) there are major obstacles to the entry of new innovative firms into concentrated industries.
B) consumer tastes are highly unstable.
C) corporate takeovers increase dynamic competition.
D) large firms rarely are technologically progressive.

Question

Quizplus · Accepted Answer

Creative destruction requires the entry of new, innovative firms into concentrated industries to disrupt the status quo. However, there are often barriers to entry, such as high start-up costs or legal regulations, that prevent new firms from entering the market and competing with established firms. Therefore, creative destruction is not automatic.

Creative Destruction Is Not Automatic Because