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Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

\textquotedblleftNew business firms can under price older firms, because thenewer firms can buy the latest equipment and are not bur-denedwith the older, less economical equipment which olderfirms must retire before they can economically adopt thenew. This is why continued technological progress contributesto maintaining a competitive economic system." Explain the er-rors in both sentences.

category

economics

options

  1. Older firms have the advantage as they can use their established reputation to outcompete new firms
  2. Technological progress always promotes competition
  3. New and old firms both benefit equally from technological progress, maintaining a balanced competition
  4. Old firms can switch to new goods and continued technological progress can create barriers to entry
  5. The cost of new technology is always low enough for new firms to afford it without financial strain
  6. Technological progress ensures that all firms have equal access to new equipment
  7. New firms have a disadvantage due to lack of experience, regardless of equipment
  8. Old firms can't retire old equipment
  9. New firms can't buy the latest equipment
  10. Old firms are more adaptable to technological changes than new firms due to their extensive industry knowledge

src

stemez-Economics

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Source and history

upstream_id / Original problem ID
7617
task_id
375693eb-9057-5e5d-a66b-2e6151655a44
task_key
default--test--7617
task_revision_id
1
config / split
default / test

Official source

initial import