Final answer:
The most appropriate stage in the product life cycle to optimize capacity is the growth stage. This is when demand for the product is increasing rapidly and the firm needs to scale up production to meet the demand.
Step-by-step explanation:
The most appropriate stage in the product life cycle to optimize capacity is the growth stage. This is when demand for the product is increasing rapidly and the firm needs to scale up production to meet the demand. By optimizing capacity during this stage, the firm can take advantage of economies of scale, where the cost per unit decreases as production volume increases.
For example, let's say a company is manufacturing smartphones. In the growth stage, the demand for smartphones is increasing rapidly as more people adopt the technology. By optimizing capacity, the company can increase production and reduce the cost per smartphone, making it more affordable for consumers.
Overall, optimizing capacity during the growth stage allows the firm to meet increasing demand efficiently and effectively, while also reducing production costs.