Imagine a competitive industry where all firms are using similar technology and are reasonably profitable. A single firm then pioneers a new production process that cuts its costs by 40%. From the perspective of a rival firm that has not yet adopted this new process, what is the most critical market change that creates the 'push' to invest in the new technology?
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Imagine a competitive industry where all firms are using similar technology and are reasonably profitable. A single firm then pioneers a new production process that cuts its costs by 40%. From the perspective of a rival firm that has not yet adopted this new process, what is the most critical market change that creates the 'push' to invest in the new technology?
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