BCOR 1015 Final Exam - Competition and Monopoly Questions & Answers Already Passed!!

Which regulations can be employed on just price? - Answer-price floors, ceilings, minimum wage, living wage Who came up with just price theory? - Answer-Thomas Aquinas What type of economy does Vance think creates just prices? - Answer-Laissez Faire Creative Destruction - Answer-the hypothesis that the creation of new products and production methods simultaneously destroys the market power of existing monopolies Disruptive Innovation - Answer-a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors, new tech replacing old tech Who has the idea of Creative Destruction? - Answer-Cox Example of disruptive innovation: - Answer-Personal computers replacing large expensive desktops Innovator's Dilemma - Answer-Whether to hold onto some market or embrace new tech and adapt business models Dumping - Answer-When manufacturers exploit to another country at a price which is below the normal price with an injuring affect Usury - Answer-the practice of lending money at exorbitant interest rates Just Price - Answer-Both buyer and seller agree on a priceCompare and contrast creative destruction and disruptive innovation - Answer-Creative destruction is the overall process of change and adaptation of actual industries to novelties, while Disruptive innovation is primarily technology-backed innovation starting at the low end of markets or creating a new market foothold.