Please answer question 24

D Question 23 Which one of the following scenarios would be an example of creative destruction? O A firm producing food blenders uses cheaper materials and components which lead to a short life span of their product. The increased wear and tear of industrial tractors leads to their quicker than expected replacement by U.S. farmers. An increased demand for oil from countries such as China and India leads to higher prices of oil on the world market and a more intensive environmenta existing producers. The introduction of google glasses into the market and a quick rise in their popularity drive companies which produce only smart phones out of business. Question 24 Why are competitive market outcomes desirable from an economic standpoint? O When companies compete with one another, they ignore marginal costs but focus on improving the quality of their products to attract customers away from their business O When companies compete with one another, they lower their price below their average total cost and thus benefit consumers. competitive markets maximizes the total surplus and thus generates an efficient outcome. cient because the price is equal to the average willingness to pay of all consumers