Standardization of products during the growth and early maturity stages of an industry life cycle encourages firms to risk large capital investments in production capacity.

Question

Quizplus · Accepted Answer

Standardization of products during the growth and early maturity stages of an industry life cycle provides firms with a clear understanding of what consumers want and allows them to invest in production capacity with more certainty that their products will sell, ultimately encouraging them to risk large capital investments.

Standardization of Products During the Growth and Early Maturity Stages