which one of the following is the process of entrepreneurs developing new products that over time make current products obsolete?
Which one of the following is the process of entrepreneurs developing new products that over time make current products obsolete?
Answer: The process described in the question is known as “creative destruction.” This concept, introduced by economist Joseph Schumpeter, refers to the continuous cycle of innovation in which entrepreneurs create new products, services, or technologies that disrupt and replace existing ones. Creative destruction is essential for economic progress as it drives innovation, boosts productivity, and leads to the advancement of society as a whole. This process involves the constant evolution of products and industries, rendering obsolete the older, less efficient technologies and business models. Through creative destruction, entrepreneurs not only introduce novelty and efficiency but also contribute to the overall dynamism and growth of the economy.