Which of the Following Is NOT a Characteristic of Products

question 76

Multiple Choice

Which of the following is NOT a characteristic of products in the maturity stage of the product life cycle?

• A) Laggards are a major focus of marketing efforts.
• B) Price competition is intense.
• C) Marketing costs increase as firms defend their market share.
• D) The market may become saturated because nearly all potential customers have adopted the product.
• E) To increase the customer base, firms consider entry into new markets and new market segments.

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Definitions:

Economic Profits

Economic profits are the financial gains that occur when the revenue from business activities exceeds the costs, expenses, and the opportunity costs of all resources employed.

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, leading to competition based on product differentiation, price, and marketing.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including rent, wages, and insurance premiums.

Short Run

A time period in economics during which at least one input is fixed and cannot be changed by the business.