Question

Generally speaking, which of the following marks a product’s entry into the growth stage of its life cycle?

(A) Prices generally begin to destabilize.
(B) Prices generally begin to stabilize.
(C) Prices decrease rapidly as competition increases.
(D) Prices decrease moderately as competition decreases.

Answer 1

The correct answer here is C).

Step-by-step explanation:

Growth stage is the second stage in the product life cycle where the sales are now start increasing, company is earning high profits and here by seeing the profitable firms in the market , new firms will enter the market to try to earn profit but due to their entry competition will intensifies which will cause the prices to go down , so therefore the option C is correct one .