At which stage in the PLC do profits increase as promotion costs are spread over a large volume, and as the firm enters new market segments?
A) maturity
B) introduction
C) decline
D) growth
E) harvest

Question

Quizplus · Accepted Answer

During the growth stage of the PLC, profits increase as promotion costs are spread over a large volume, and as the company enters new market segments. This is because during this stage, sales are rapidly increasing, and the company is expanding its customer base, which helps to spread promotion costs over a larger volume. Additionally, the company may be introducing new products or entering new markets, which can also lead to increased profits.

At Which Stage in the PLC Do Profits Increase as Promotion