In the growth stage of the product life cycle, competition:
A)is virtually nonexistent.
B)begins as firms introduce their own versions of the product.
C)becomes well-established, with many weaker firms already leaving the market.
D)spurs major price cuts that dramatically cut into profits.

Question

Quizplus · Accepted Answer

During the growth stage of the product life cycle, the product gains acceptance in the market and sales increase. As a result, competitors start to introduce their own versions of the product, leading to increased competition. This is why choice B is the best option. Choice A is incorrect because there is always some degree of competition in any market. Choice C is incorrect because weaker firms may leave the market, but competition still remains. Choice D is incorrect because major price cuts are more likely to occur in the later stage of the product life cycle when sales start to decline.

In the Growth Stage of the Product Life Cycle, Competition