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Question
What is a partly parallel development process? Is it universally used?Answer
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D. the product design is adopted by the majority of producers.
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When a technology's performance is plotted against the amount of effort and money invested in the technology, it typically shows slow initial improvement, then accelerated improvement, then diminishing improvement.
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S-curves in technology performance and s-curves in technology diffusion are fundamentally different processes.
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The path a technology follows through time is termed as technology trajectory.
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Firms often form alliances with competitors to jointly work on an innovation project or to exchange information in pursuit of innovation.
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B. They are only borne by individuals responsible for creating them.
C. Technological innovation results in complete eradication of negative externalities.
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Technological innovations increase:
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Technological innovation decreases the amount of output achievable from a given quantity of labor and capital.
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The influence of a dominant design can extend beyond its own technology cycle.
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A legally induced adherence to a dominant design is not possible.
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Network externalities cannot arise in markets that do not have physical networks.
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The learning curve indicates that the more units a company produces of an item, the more each unit will cost.
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What are the factors that determine whether switching to a new technology will benefit a firm?
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How can the s-curves be used as a prescriptive tool? What would be the limitations of this approach?
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Once a new product design becomes a dominant design:
A. the product is no longer profitable.
B. it becomes difficult for competitors to imitate.
C. the architecture on which the industry can focus its efforts is destabilized.
D. the product design is adopted by the majority of producers.
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Iris is quite skeptical about new innovations and is most likely to adopt something new only after experiencing peer pressure to adopt the new innovation. However, she is not so risk averse that she will wait until all uncertainty of a new technology has been resolved; she is willing to accept a little uncertainty if her peers already use the product. Which of the following adopter categories does Iris belong to?
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If a firm's objective is maximum market skimming, it will initially set a high price on new products.
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Preadvertised products that are not actually on the market yet and may not even exist are referred to as _____.
A. substitute products
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C. consignments
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In the context of a firm's product diffusion curve, when there is a chasm between early adopters and early majority customers:
A. the firm must reduce its production capacity.
B. the firm should improve its efficiency to target the mass market.
C. the early majority market becomes saturated.
D. the early majority market is ready to buy the product.