When a product is in the decline and possible abandonment stage of the product life cycle,:
A) the amount of advertising increases.
B) demand increases.
C) marginal producers are making a profit.
D) economies of scale are always achievable.
E) none of the above happens.

Question

Quizplus · Accepted Answer

During the decline and possible abandonment stage of the product life cycle, advertising typically decreases as companies reduce spending on products that are not generating significant revenue. Demand for the product also decreases, which is why it is in the decline stage. Marginal producers often struggle to make a profit due to reduced sales volumes, and economies of scale may not be achievable or relevant due to the reduced production and sales volumes.

When a Product Is in the Decline and Possible Abandonment