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Suppose it is 1905 and you are a buggy whip manufacturer. You hear a commotion outside and learn that a gas operated machine (car) had frightened a horse drawn carriage. You then look at your inventory of leather buggy whips and say to yourself (expletive deleted). Again, it is 1905, you leave work and go home for dinner. You say to your wife "wife, you are not going to believe what I saw today. I see the future and buggy whips will soon be obsolete. " Hint: apply this scenario to Schumpeter's concept of "creative destruction".
UNDER THE OPPORTUNITY COST THEORY IM THINKING OF DOING SOMETHING WITH THE LEATHER TO CREATE A NEW PRODUCT. IM THINKING THAT BACK IN 1905 THERE WAS A SUCH THING AS WHEELS OF COURSE FOR AUTOMOBILES BUT WHAT IF THERE WERENT ANY AUTOMOBILES. ALSO BUGGY WHIPS WOULD HAVE BECOME OBSELETE BECAUSE OF THE AUTOMOBILE.
ANY SUGGESTIONS?
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