According to William Baumol under oligopolistic competition among large, high tech business firms. innovation has ?
Correct answer: C. replaced price as the important
- A. created stationary economies of scale
- B. maintained the relationship between firms and their clients
- C. replaced price as the important
- D. limited the expansion of firms
Explanation
Baumol argued that in high-technology oligopolies, innovation can become the main competitive weapon, taking the place of price competition. The other options do not describe the strategic role of innovation in such markets.
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