ACCTG 1 Lecture Notes - Lecture 11: Disruptive Innovation, Oligopoly, Money Supply
Document Summary
Chapter 2 the economics of entrepreneurship and public policy: the economics of entrepreneurship. Growth of small firms seen as the triumph of the free market and the success of the enterprise culture" resulting from increased competition to prevent private and public monopoly. Traditional industrial economist would explain the growth of new firms in terms of industry profitability, growth, barriers to entry and concentration; entry is high when expected profits are high. Focused on optimizing existing resources within a stable environment and treated any disruptions, e. g. growth of entrepreneurial new firms that created whole new industries, as god sent external forces. Economy tended towards equilibrium; changes in that equilibrium could only occur through changes in the underlying conditions of the economy (e. g. population growth, external shocks, wars) An endogenous process within capitalism of wrenching the economy out of its tendency towards one equilibrium position and towards a different one.
