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True or False:

In the replacement case where the defender and challenger are identical, it is not necessary to assume that the two options are technologically identical.

1 Answer

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Final answer:

The statement is False. Technological identity must be considered in the replacement decision between two identical entities to differentiate them, particularly for efficiency, cost, and future compatibility reasons.

Step-by-step explanation:

The question appears to be discussing a concept related to economic theory, specifically within the context of replacement and decision-making between two options, known as the defender and the challenger. The statement given, suggesting that in the replacement case where the defender and challenger are identical, it is not necessary to assume technological identity between the two options, is False. In such a case, if the defender and the challenger are identical in their capabilities and other characteristics except their technologies, the technological aspect becomes a critical factor for differentiating them. This is crucial for deciding whether to keep the defender or replace it with the challenger.

The concept of technological identity would be important to consider here due to potential differences in efficiency, costs, and possible future compatibility with other technologies or systems. As indicated in the reference, not being at the same technological level could have a significant impact on the options available, their performance, and their suitability for the replacement decision.

User Dominik Sajovic
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