flashcards

what is an Entrepreneur

An entrepreneur is someone who has a business idea and organises resources to make and sell a product or service who can accept risk and make key start-up decisions

what is creative destruction

Organising factors of production to create and set up an enterprise

when does creative destruction happen

Creative destruction happens when innovation creates better products or processes that win consumers, while older ones shrink or exit

what could technological change result to

Technological change can result in improvements in efficiency and productivity, which would lower cost of production for firms. The quality and quantity of goods and services produced might improve

give example of an impact of technological change

Mobile phones became cheaper to produce, which is why their price has fallen. more importantly, their quality has improved significantly due to improvements in technology.

how can technological change lead to new markets opening and close markets

Technological change can lead to development of new markers, the development of new markets and may destroy existing markets. For example, the development of DVDs, then blu-rays, and now the rise of downloadable films, has essentially destroyed the market for VHS video tapes