As described by the product life cycle, the profit curve for most new products:
A) is unaffected by the product life cycle.
B) is negative through most (perhaps all) of the introductory stage of the product life cycle.
C) has exactly the same shape as the sales volume curve.
D) will not vary from product to product.
E) is negative during all of the growth stage of the product life cycle.

Question

Quizplus · Accepted Answer

During the introductory stage of the product life cycle, companies often face high costs associated with product development, marketing, and distribution, with sales volume still growing. This can lead to negative profits until the product gains market acceptance and moves into the growth stage.

As Described by the Product Life Cycle, the Profit Curve