A Market That Mainly Competes on the Basis of Price

question 67

Multiple Choice

A market that mainly competes on the basis of price and has stagnant growth is characteristic of what life cycle stage?

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

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Definitions:

Market Growth

The increase in the demand or sales of a particular product or service within a specific industry or market over time.

Stealing Share

A business strategy aimed at gaining market share from competitors through tactics like competitive pricing, improved quality, or marketing.

Marginal Subcontracting Cost

The additional cost incurred for subcontracting one more unit of production or service.

Layoff Cost

refers to the expenses associated with terminating employees, including severance payments, benefits continuation, and administrative costs.