If a Firm Is Facing Intense Competition on the Prices

question 79

Multiple Choice

If a firm is facing intense competition on the prices of its product and in turn it is leading to a decrease in the firm's profit margins, then the product is said to be in which stage of its life cycle?

• A)Decline
• B)Introduction
• C)Maturity
• D)Growth
• E)Deterioration

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Definitions:

High Grade

A term indicating a level of superior quality or performance, often used in educational or professional contexts to denote excellence.

Loss Aversion

A cognitive bias that describes how the pain of losing is psychologically more powerful than the pleasure of gaining.

Option's Disadvantages

The negative aspects or drawbacks associated with a particular choice or decision.

Sensitivity

The ability of a test or system to correctly identify those with a condition, reflecting how well it detects true positives.