Why do profits decline during the growth stage of the product life cycle?
A) consumers' needs change
B) consumers are not yet aware of the product
C) competitors lower prices
D) new products or technology have replaced the product

Question

Quizplus · Accepted Answer

During the growth stage of the product life cycle, competition increases and more players enter the market, which leads to price wars and a decrease in profit margins. Competitors may lower prices to gain market share, causing reduced profit margins for existing businesses.

Why Do Profits Decline During the Growth Stage of the Product