Question

g Profit margins tend to peak during the growth stage of the Product Life Cycle. This is due to ___________________.this being the stage with the most intense competitionthe fact that companies don't spend on advertising in this stagedeclining unit manufacturing costs while prices can remain highthe fact that sales volumes are starting to declineprices tend to be the lowest in this stage

Answer 1

Answer:

Declining unit manufacturing costs while prices can remain high.

Explanation:

A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.

Generally, there are four (4) stages in the product-life cycle;

1. Introduction.

2. Growth.

3. Maturity.

4. Decline.

Generally, the growth stage is the stage where the product gains acceptance from the consumer and there is a significant increase in demand and sales.

Profit margins tend to peak during the growth stage of the Product Life Cycle. This is due to declining unit manufacturing costs while prices can remain high because the product has been accepted in the market and its unit cost of production is lesser i.e they are manufactured in bulk.