Question

During the maturity stage of the product life cycle, profit declines primarily because: Multiple Choice a) there is fierce price competition among sellers. b) more consumers enter the market seeking bargains. c) promotional expenditures increase. d) production costs increase the more a firm has to manufacture the same product. e) there are fewer and fewer competitors in the market.

Answer 1

A) there is fierce price competition among sellers.

Step-by-step explanation:

A product's competition intensifies in the maturity stage, since more competitors enter the market and new production technologies reduce manufacturing costs. The only way a company can increase its customer base is by taking them away from its competitors.