--%>
Assignment Help - homework help

How market system promotes technological improvements

How market system promotes technological improvements?

E

Expert

Verified

a. An entrepreneur or firm that introduces a popular new product will be rewarded with increased revenue and profits.

b. New technologies that reduce production costs and therefore product price will spread throughout the industry as a result of competition.

c. Creative destruction occurs when new products and production methods destroy the market positions of firms that are not able or willing to adjust.

   Related Questions in Business Economics

  • Q : Rise in participation of women in the

    Which two of the six reasons listed in the Last Word do you think are the most important in explaining the rise in participation of women in the workplace? Explain your reasoning.

    		•
  • Q : Marginal rate of substitution Problem:

    Problem: Luke likes to consumer CDs (good1) and pizzas (good 2). His preference over both goods is given by the utility function U(x1; x2) = x21

  • Q : Define the natural price by Adam Smith

    In words of Adam Smith, who theorized that the “natural price” of a good based most directly upon the: (1) wage rate and the relative amount of labor required to produce the good. (2) greater of the value of the good &ldqu

    		•
  • Q : Illustrate a fundamental characteristic

    Illustrate a fundamental characteristic of demand behavior?

    		•
  • Q : Explain the foundation of economics

    Explain the foundation of economics where society’s material wants are unlimited?

    		•
  • Q : Characteristics of Perfectly

    Perfect competition is characterized by all of the following except w) heavy advertising by individual sellers. x) homogeneous products. y) sellers are price takers. z) a horizontal demand curve for individual sellers.

    Q : Profit in perfect competition leads to

    An increase within demand for "green-certified" products will ________ a firm's economic profit, and the raise within costs to have a product certified like "green" will ________ a firm's economic profit: w) increase; increase x) increase; decrease y)

    		•
  • Q : Production function for the game

    Question Can you describe what the production function for the game looks like? (How are labour, capital and resources combined? Are there constant, increasing or decreasing returns to scale?) Answer

    Q : Illustrate the Goals of Mixed Economy

    Illustrate the Goals of Mixed Economy?

    		•
  • Q : How can we evaluate cost of capital How

    How can we evaluate cost of capital?

    		•