Question

An industry's sales have leveled off and profits are declining in oligopolistic competition. Consumers see competing products as homogeneous. Several firms have dropped out of the industry, but a new one entered recently. Firms in the industry are trying to avoid price-cutting by spending on persuasive advertising. These firms are competing in which stage of the product life cycle?A. Market growth B. Market maturity C. Market development D. Market introduction E. Sales decline

Answer 1

Answer: Market maturity

Explanation:

A market is said to be mature when it has gotten to a state of equilibrium. The state of equilibrium means when an absence of lack of innovation or significant growth and the demand is equal to the supply that is decided by the market forces.

The maturity stage of the product life cycle explains that sales will peak and later slow down. At this stage, the sales growth has started to reduce and the product has reached widespread acceptance in the market.