The growth phase of the product life cycle is always dynamic.All of the following occur during this phase except
A) profits increase as sales increase.
B) profits increase as economies of scale are attained.
C) some new competitors may enter the market with similar products.
D) some competitors will exit in an "industry shakeout."
E) price competition with protracted price wars erodes profits.

Question

Quizplus · Accepted Answer

All of the other options are potential occurrences during the growth phase of the product life cycle. However, price competition with protracted price wars erodes profits is not a typical occurrence during this phase. Instead, it is more commonly found during the maturity or decline phases of the life cycle.

The Growth Phase of the Product Life Cycle Is Always