During the Product Life Cycle,when Do Sales Begin to Climb

question 94

Multiple Choice

During the product life cycle,when do sales begin to climb and the product begin to show profit?

• A) Ascending
• B) Mature
• C) Initial
• D) Growth
• E) Accelerated

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Definitions:

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Marginal Product Curve

A graphical representation that shows how the addition of one more unit of a resource to production affects the output of a product.

Total Product Curve

A graphical representation showing how the total quantity of output varies with changes in the quantity of a single input while other inputs are held constant.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies as production increases.