Product Life Cycle Is the Way Demand for a Product

question 23

True/False

Product life cycle is the way demand for a product changes in a predictable pattern over time.

---

Definitions:

Diminishing Marginal Productivity

A principle in economics that indicates that as one inputs more of a factor of production while holding other factors constant, the additions to output will eventually decrease.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in per-unit cost with increasing output.

Specialization

The process by which individuals, firms, or countries focus on producing a certain type of goods or services, often to achieve greater efficiencies or quality.