Which of the Following Is True of the Growth Stage

question 21

Multiple Choice

Which of the following is true of the growth stage of the product life cycle?

• A) New competitors avoid the market.
• B) Prices tend to increase significantly.
• C) Early adopters stop buying the product.
• D) Profits are nonexistent at this stage.
• E) Sales start climbing quickly.

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Definitions:

External Costs

Costs of an economic activity that are not borne by the participants but rather by other people or society at large.

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund various public expenditures.

Marginal Social Benefit

An additional gain to society derived from consuming or producing another unit of a good or service.

Marginal Social Cost

An increased charge to the general public for the creation of one more unit of a product or service.