The resources owned by firms that shut down in the process of creative destruction:

a. are used where they have less value and thus reduce cost.

b. move to activities where they are more highly valued.

c. are used in activities that are identical to the failed business.

d. are written off and contribute to wastage in the economy.

e. are liquidated and can never be used again.

Question

Business

Stella

24 May, 00:12

The resources owned by firms that shut down in the process of creative destruction:

a. are used where they have less value and thus reduce cost.

b. move to activities where they are more highly valued.

c. are used in activities that are identical to the failed business.

d. are written off and contribute to wastage in the economy.

e. are liquidated and can never be used again.

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Answers (1)

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Seamus · Answer 1

The answer is "b. move to activities where they are more highly valued."

Creative destruction depends on the possibility that as opposed to inclining toward harmony, the economy is to a great extent in flux.

Creative destruction is the perception that a free enterprise economy is inalienably determined by developments, which are entwined with the pulverization of old parts of the economy and the making of new. That is, the development of another item triggers capital speculation, monetary extension, more noteworthy business, and improved expectations for everyday comforts, except by supplanting existing generation laborers are jobless, industrial facilities are closed down, and firms go bankrupt.