Question

Increasing profits will most likely occur at which stage of the PLC?

A) introduction
B) maturity
C) growth
D) decline
E) product development

Answer 1

Increasing profits are most likely to occur at the introduction stage of the PLC when a new product or service is first introduced to the market and there is little competition.

Step-by-step explanation:

In a competitive market, profits result in the entry of new firms into the industry. This usually occurs when there is a high demand for a product and existing firms are making significant profits.

The entry of new firms increases competition, which can lead to a decrease in prices and potentially lower profits for all firms. Therefore, increasing profits are most likely to occur at the introduction stage of the Product Life Cycle (PLC), when a new product or service is first introduced to the market and there is little competition.