Cutting Low-Gross-Margin Products from the Line Takes Place in Which

question 20

Multiple Choice

Cutting low-gross-margin products from the line takes place in which stage of the product life cycle?

• A) Growth
• B) Introduction
• C) Development
• D) Decline
• E) Maturity

---

Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms in a competitive market make just enough profit to cover their costs.

Marginal Cost

The increase or decrease in the total cost incurred from producing one additional unit of a good or service.

Industry Entry

The act of a new company entering an existing market with the intention of selling goods or services.