During the Introduction Stage of the Product Life Cycle

question 168

Multiple Choice

During the introduction stage of the product life cycle,

• A) "me-too" products quickly take market share away from the innovator.
• B) most products achieve intensive distribution.
• C) industry profits are at their highest.
• D) promotion is likely to be needed to build primary demand.
• E) None of these alternatives is true.

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Definitions:

Marginal Revenue Product

The extra income that comes from using an additional unit of a resource, like workers or money.

Derived Demand

Demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.

Resource Demand

Refers to the total amount of goods and services that businesses require to produce their own goods and services.

MRP

An acronym for Material Requirements Planning, a system used for production planning and inventory control, or alternatively for Marginal Revenue Product, the extra revenue generated from employing one more unit of a resource.