Creative destruction is not automatic because
A)there are major obstacles to the entry of new innovative firms into concentrated industries.
B)consumer tastes are highly unstable.
C)corporate takeovers increase dynamic competition.
D)large firms rarely are technologically progressive.

Question

Quizplus · Accepted Answer

Major obstacles to the entry of new innovative firms into concentrated industries can prevent the process of creative destruction from occurring automatically. These obstacles can include high barriers to entry, such as significant capital requirements, regulatory hurdles, and established firms' control over critical resources or distribution channels.

Creative Destruction Is Not Automatic Because