Which of the following observations is true of a mature market?
A) There is downward pressure on prices.
B) Profit margins are never under threat.
C) Differentiating the value a firm offers is easy.
D) Pricing choices are abundant.
E) Price moves up the demand curve over time.

Question

Quizplus · Accepted Answer

In a mature market, competition tends to be high, which means there is downward pressure on prices as companies compete for market share. This can make it difficult for companies to maintain high profit margins and may make it challenging to differentiate their offerings from those of competitors. While pricing choices may still exist, they may be limited by the competitive landscape. Price does not typically move up the demand curve over time in a mature market.

Which of the Following Observations Is True of a Mature