During the Maturity Stage of the Product Life Cycle, Profit

question 330

Multiple Choice

During the maturity stage of the product life cycle, profit declines primarily because

• A) there are fewer and fewer competitors in the market.
• B) promotional expenditures increase.
• C) production costs increase the more a firm has to manufacture the same product.
• D) there is fierce price competition among sellers.
• E) more consumers enter the market seeking bargains.

---

Definitions:

Production Budget

A production budget is a financial plan that estimates the number of units to be produced to meet anticipated sales demand.

Sales Budget

A detailed projection of a company’s sales revenue for a certain period, often used as a basis for production, purchasing, and staffing plans.

Service Firm

A business that provides intangible products or services to customers, as opposed to selling physical goods.

Products Purchase

The expenditure a company makes to buy goods that will be sold to its customers.