The product life cycle curve can help marketers determine pricing. In general, as a product matures, the price will go down as
A) competitors exit the market.
B) costs to make the product go down as it matures.
C) inelastic prices are now becoming more elastic.
D) all profits have been realized in a product, and the firm is moving to harvest the remaining value.

Question

Quizplus · Accepted Answer

As a product matures, the costs to make the product go down as it matures. This is because the company has gained experience in producing the product, and has found ways to make it more efficiently. As a result, the company can lower the price of the product and still make a profit.

The Product Life Cycle Curve Can Help Marketers Determine Pricing