When Sales Peak,there Is a Low Cost Per Customer,profits Are

question 62

Multiple Choice

When sales peak,there is a low cost per customer,profits are high,and the marketing manager attempts to maximize profit while defending market share,the product is most likely in the ________ stage of the product life cycle (PLC) .

• A) introduction
• B) prepioneering
• C) growth
• D) maturity
• E) decline

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, indicating the cost per unit of output.

Profit-maximizing

A strategy or approach that aims to achieve the highest possible profit from business activities.

Marginal Revenue

The revenue increase from selling an additional good or service unit.

Competitive Price-searcher

A market condition where firms have some control over pricing because their products are differentiated, but they must still consider competitors' prices in their pricing strategy.