Final answer:
The stage of new-product development in which a firm considers profitability is business analysis. This stage focuses on the financial aspects of a product idea including sales, costs, and profit projections to ensure alignment with company goals.
Step-by-step explanation:
The stage of new-product development where a firm considers profitability is business analysis. This stage involves evaluating the potential of a product idea from a business standpoint and it typically includes assessment of sales, costs, and profit projections to determine whether they align with company objectives. During this phase, questions such as what product or products should the firm produce, how should the firm produce the products, what price should the firm charge for its products, and how much labor should the firm employ are crucial. This evaluation is essential for a firm to decide whether to move forward with a product concept. Other stages of product development like idea generation, testing, product development, and compatibility research have their focus, but business analysis is key for evaluating a product's potential profitability.