One of the Chief Advantages of Using the Product Life

question 139

True/False

One of the chief advantages of using the product life cycle as a forecasting procedure is that product life-cycle patterns have proven to be stable in shape and duration.

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Definitions:

Government Intervention

Actions taken by government to affect the economy, markets or societal issues, which can include regulations, subsidies, and taxes.

Positive Externalities

These are benefits that a transaction or activity provides to those not involved in the transaction or activity.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction that they were not directly involved in.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, typically resulting from increased production where the cost per unit of output drops as scale increases.