An article on cnbc.com about the turnover in the firms included in the S&P 500 stock index notes that “the disruptive force of technology is killing off older companies earlier and at a much faster rate than decades ago, squeezing employees, investors and other stakeholders.”
a. Which of the five competitive forces is new technology likely to represent in a typical industry?
b. The article notes that when firms fail, the firms’ employees and investors lose. Can we conclude that the economy would therefore be better off with less technological change? Briefly explain.