--%>
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 : Banking crisis on checkable deposits

    Question: Some developing countries have suffered banking crises in which depositors lost part or all of their deposits (in some countries there is no deposit insurance). This type of crisis decreases depositors' confidence in the banking syst

    		•
  • Q : Market Apparent program For the

    For the question below, utilize the given information. The market for gizmos is competitive, with an increasing sloping supply curve and a downward sloping demand curve. With no govt. intervention, the equilibrium price is $25 and the equilibrium quantity is 10,000 gi

    		•
  • Q : Major players in international trade

    Who are the major players in international trade today?  Besides Japan, what other Asian nations play significant roles in international trade?

    		•
  • Q : How might government correct this

    What divergences arise between equilibrium and an efficient output spillover benefits are present?  How might government correct this divergence?

    		•
  • Q : Limitations of activities to generate

    Illustrations of activities which generate negative externalities would not comprise: (w) burning coal that results in acid rain. (x) smoking a cigar at the opera. (y) killing fish by dumping sewage into a river. (z) being inoculated against a contagi

    		•
  • Q : Need urgent help need urgent help in

    need urgent help in business economics, please suggest

    		•
  • Q : Comment surpluses drives price

    surpluses drives price down,shortages drive up

    		•
  • Q : Gains from the Exchange Even people who

    Even people who are extremely good at everything couldn’t encompass: (i) absolute benefits in approximately everything. (ii) Much higher incomes than average. (iii) Comparative benefits in everything. (iv) Superior natural endowments of talent.

    Q : Firm costs and revenues Question:  You

    Question:  You are given the following data about two firms: FIRM A Quantity 0

    • Q : Theory of wages according to Adam Smith

    Least consistent along with Adam Smith’s theory of wages would be the suggestion that wages vary positively along with the: (w) effort required to learn skills necessary to accomplish particular types of work. (x) stability of employment and the