Question

Which of the following statements regarding the market growth stage of the product life cycle is false?A. Innovators still earn profits, but this stage is less profitable for them than the previous stage.B. It is during this stage that the company makes its biggest profits.C. Monopolistic competition is typical of this stage.D. The sales of the total industry rise fairly rapidly during this stage as more and more customers buy.E. Many competitors enter the market during this stage resulting in great product variety.

Answer 1

Option A , Innovators still earn profits, but this stage is less profitable for them than the previous stage.

Explanation:

The second phase in the product life cycle is the stage of growth, and this is a crucial stage for several manufacturers to achieve a market position, increase sales and improve profitability.

The period of growth is that in time the product will be accepted by consumers, business and the general public more and more. During this phase, the product or innovation is acknowledged on the market and sales are therefore beginning to rise.

The extent to which a product keeps moving from the start to the growth stage and the rapid increase in revenue can vary significantly from market to another.