Which of the Following Is a Characteristic of the Growth

question 133

Multiple Choice

Which of the following is a characteristic of the growth stage of the product life cycle?

• A)advertising emphasis switches to primary demand
• B)a growing proportion of repeat purchasers to initial purchasers
• C)the number of distribution outlets shrinks due to growing inefficiencies
• D)profit margins increase as sales increase
• E)no new product features are added to maximize profits

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Definitions:

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical, allowing for competition based on quality, price, and branding.

Goods Offered

The products made available to consumers in the market, including tangible items that satisfy needs or wants.

High Start-Up Costs

The significant initial investment required to establish a new business, which can include expenses related to research and development, manufacturing, marketing, and administrative infrastructure.

Few Competitors

A market condition where only a small number of firms operate, often leading to higher prices and reduced competition.