According to the process of creative destruction, at first the entrepreneur will be able to sell her product for
A)a low price because it is not well known.
B)a high price because there is no competition.
C)a fair price because these are contestable markets.
D)at a price of zero until the market is created.

Question

Quizplus · Accepted Answer

According to the process of creative destruction, the entrepreneur will be able to sell her product for a high price because there is no competition initially. As the market becomes established, and with the entry of competition, the initial high price will be eroded, leading to lower prices and higher volumes.

According to the Process of Creative Destruction, at First the Entrepreneur