The market life cycle should be used as a short-run forecasting device because it provides a conceptual framework for understanding what changes typically occur.

Question

Quizplus · Accepted Answer

The industry life cycle refers to the stages of introduction, growth, maturity, and decline that occur over the life of an industry. In considering the industry life cycle, it is useful to think in terms of broad product lines such as personal computers, photocopiers, or long-distance telephone service. Changes tend to be slower than what is needed for forecasting.

The Market Life Cycle Should Be Used as a Short-Run