Which of the Following Statements Is True About Product Life

question 39

Multiple Choice

Which of the following statements is true about product life cycle theory?

• A)The theory was developed in the 1960s when the U.S. was the leader in R&D.
• B)The international system of production is becoming too complicated to be explained by a simple version of the product life cycle theory.
• C)It predicts that over time the U.S. switches from an exporting country of new products to an importing country.
• D)All of the above

---

Definitions:

Profit Maximization

The strategy of adjusting production and sales to achieve the maximum possible profits.

Input Increases

A situation where the amount, quality, or number of resources used in production grows, potentially leading to an increase in output.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus.

Production Function

An equation, graph, or table that describes the maximum amount of output a firm can produce from a given set of inputs.