Question

A company is usually unable to take advantage of economies of scale during the __________ stage of the product life cycle. A. Saturation B. Introduction C. Growth D. Maturity Please select the best answer from the choices provided A B C D

Answer 1

A company is usually unable to take advantage of economies of scale during the introduction stage of the product lifecycle.

Answer 2

The answer is: B) Introduction

Step-by-step explanation:

When a new product is being launched or introduced into a market, generally it is done on relatively small quantities to see if they are successful or not. Even new convenience products are introduced gradually, so the levels of production are not that big.

Even when huge multinational corporations launch new products, they will do it in relatively small numbers. When Coke introduced Coke Zero, it didn't saturate all supermarkets and grocery stores with Coke Zero. You probably saw a lot of Coke Zero cans but they were relatively fewer than regular Coke cans.