The Growth Phase of the Product Life Cycle Is Always

question 53

Multiple Choice

The growth phase of the product life cycle is always dynamic.Which of the following does not occur in this phase?

• A) Profits increase as sales increase.
• B) Profits increase as economies of scale are attained.
• C) Some new competitors may enter the market with similar products.
• D) Some competitors will exit in an "industry shakeout."
• E) Price competition with protracted price wars erodes profits.

Grasp the role of government intervention in correcting market failures and externalities.

Understand the importance of property rights in a market economy.

Recognize the impact of government policies on market economies.

Explain the relationship between prices and economic activity.