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    Question

    During the maturity stage of the product life cycle, profit declines because:

    A there are fewer and fewer competitors in the market. Correct Answer Incorrect Answer
    B better products are only in the growth stage Correct Answer Incorrect Answer
    C production costs increase the more a firm has to manufacture the same product. Correct Answer Incorrect Answer
    D there is fierce price competition among sellers. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Profit declines because there is fierce price competition among many sellers and the cost of gaining each new buyer at this stage is greater.

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