Question

VLR analysis of technology assumes that:

a) Technology is no longer fixed
b) New firms enter the industry with better technology than existing firms
c) Both of the mentioned points
d) None of the mentioned points

Answer 1

VLR analysis of technology assumes that technology is no longer fixed and new firms enter the industry with better technology than existing firms.

Step-by-step explanation:

The VLR analysis of technology assumes that both of the mentioned points are true: a) Technology is no longer fixed, and b) New firms enter the industry with better technology than existing firms.

This means that technology is constantly changing and improving, and new entrants into the industry have the advantage of using the latest and most advanced technology.

For example, in the field of smartphones, new companies like Apple and Samsung entered the market with innovative technology and quickly surpassed older companies like Nokia.