Acme Corporation is currently experiencing rising sales for a new product idea it pioneered several months ago. Profits are also increasing, so other competitors are now entering the market with similar products. The competitive situation is changing from monopoly to monopolistic competition. In which stage of the product life cycle is Acme Corporation operating?
A) Market establishment.
B) Market introduction.
C) Market growth.
D) Market maturity.
E) Sales decline.

Question

Quizplus · Accepted Answer

The rising sales and profits indicate that Acme Corporation is experiencing market growth as the demand for their new product is increasing. The entry of competitors signifies the shift from monopoly to monopolistic competition, which is a typical characteristic of the market growth stage.

Acme Corporation Is Currently Experiencing Rising Sales for a New