The Product Life Cycle, as Opposed to the Competitive Advantage

question 80

Multiple Choice

The product life cycle, as opposed to the competitive advantage life cycle:

• A)helps an entrepreneur visualise the sales and profits of a product from the time it is introduced until it is no longer on the market.
• B)details when a strength can be used in the market and when not to attack a rival.
• C)reflects sales trends for the company's multiple products or services.
• D)is based on the overall sales of the total product or service line.

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Definitions:

Marginal Benefit

The increase in satisfaction or utility one gets from the consumption of an additional unit of any good or service.

Marginal Cost

The raised expense resulting from the production of one additional product or service unit.

Optimal Amount

The most efficient level or quantity of a good or service to achieve a specific goal or maximize utility.

Concentration Ratios

Measures that indicate the degree of market concentration by showing the market share of the largest firms in an industry.