Profits are lower in the introductory phase because revenues are low and investment and learning may be high.

Question

Quizplus · Accepted Answer

In the introductory phase, the product is still being introduced to the market, so revenues are generally low. Additionally, companies often invest heavily in research and development, product design, and marketing during this phase, which can increase expenses and lower profits. There may also be a learning curve as the company works to optimize production processes and delivery logistics, which can also affect profitability.

Profits Are Lower in the Introductory Phase Because Revenues Are