An industry with oligopolistic competition faces falling profits and its sales growth is slow. Demand for individual brands has become quite elastic--as consumers see competing products as almost homogeneous. Several firms have dropped out. What is the life cycle stage?
A) Market maturity
B) Sales decline
C) Market growth
D) Market introduction
E) Product renewal

Question

Quizplus · Accepted Answer

The industry is facing falling profits and slow sales growth, which suggests it has reached the maturity stage. Additionally, the fact that several firms have dropped out indicates that the market is becoming increasingly saturated and competitive, further supporting the maturity stage. The elastic demand for individual brands and the perception of competing products as homogeneous are also typical characteristics of a mature market.

An Industry with Oligopolistic Competition Faces Falling Profits and Its