What can be told about the financial attractiveness of a market by examining the cumulative adoption S-curve?
A) in the first stage of the product life cycle, revenues are high and costs are low, making profits high
B) in the second stage revenues are rising faster than costs and profit margins increase
C) in the third stage revenues and costs fall leading to increased profit
D) in the third stage revenues increase faster than costs leading to increase profits

Question

Quizplus · Accepted Answer

In the second stage of the product life cycle, revenues typically rise faster than costs as the product gains market acceptance, leading to increased profit margins.

What Can Be Told About the Financial Attractiveness of a Market