An industry's sales have leveled off and profits are declining in oligopolistic competition.Consumers see competing products as homogeneous.Several firms have dropped out of the industry,but a new one entered recently.Firms in the industry are trying to avoid price-cutting by spending on persuasive advertising.These firms are competing in which stage of the product life cycle?
A)market growth
B)market maturity
C)market development
D)market introduction
E)sales decline

Question

Quizplus · Accepted Answer

During the market maturity stage,industry sales level off and profits decline.Due to stiff competition,less efficient firms drop out of the market while new firms may still enter.Products tend to differ only slightly and firms focus on persuasive promotion.

An Industry's Sales Have Leveled Off and Profits Are Declining