Final answer:
True, the runout approach is used for technologically obsolete products, allowing them to naturally phase out from the market. It should not be confused with planned obsolescence, which is an intentional design for product lifespan limitation.
Step-by-step explanation:
The runout approach to product deletion is indeed used for technologically obsolete products. This strategy involves allowing the product to decline without additional investment, and selling off any remaining inventory until it is depleted. In contrast, planned obsolescence is a different concept where a company designs a product with an intentionally limited useful life, so customers will have to purchase a replacement sooner. Examples of planned obsolescence include mobile phones and household appliances that are expected to fail within a certain timeline or cannot compete with emerging new technologies making them obsolete. True.
Historically, products like agricultural goods were consumed and could not be reused. However, with advancements in technology, components can be repurposed in new products. A shift in technology can provide a significant competitive edge to companies that adapt quickly, as seen with the transition from bulky desktop computers to sleek, efficient modern models.
As technology progresses, companies may not necessarily plan for their products to become technologically obsolete; however, they do anticipate that ongoing innovation will naturally lead to newer, more appealing products. The runout approach consequently becomes a method for phasing out these outdated items.