The correct answer is false.
It is false that during the product development stage one asks questions such as: Would current customers benefit from the product? What new facilities, if any, would be needed? How might competitors respond? What is the risk of failure? Is the company willing to take the risk?
We re talking about the first stage of the Product Life Cycle, the natural cycle when a product is introduced in the market.
The Product Development Stage is when the company is doing the proper research, designing and building the product and the needed testing to guarantee that the product has the quality to compete in the market.
The other stages of the Product Life Cycle are Introduction, Growth, Maturity, and Decline of the product.