Which of the Following Statements About the Decline Stage of the Product

question 7

Multiple Choice

Which of the following statements about the decline stage of the product life cycle is most accurate?

• A)Ironically, in the decline stage, sales decline even though profits increase.
• B)A product always enters the decline stage as the result of a major product flaw or marketing misstep.
• C)A major reason that a firm's product enters the decline stage is as a result of changes in the marketing environment.
• D)The only real step that can be taken to avoid the decline stage and ultimately extinction is to increase marketing expenditures as soon as the product enters its maturity stage.
• E)Service industries are exempt from the decline stage because of their intangible nature.

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Definitions:

Absolute Advantage

A condition in which a country, individual, or firm can produce a good or service at a lower cost per unit than competitors.

Specialization

Focusing on a narrow area of expertise or production, often leading to increased efficiency and productivity in that area.

Current Assets

Assets on a company's balance sheet that are expected to be converted into cash, sold, or consumed within a year or the business's operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year, indicating the amount a company owes its creditors and others.