Often,the earlier a product is in its life cycle:
A)the lower the price the firm must charge.
B)the more competition it has.
C)the greater the flexibility to charge a higher price.
D)the lower the production costs.

Question

Quizplus · Accepted Answer

When a product is in its early stages of the life cycle, there is less competition and the firm has the flexibility to charge a higher price. This is because the product is new and innovative, and customers are willing to pay a premium for it. As the product moves through its life cycle, competition increases and the firm may need to lower prices to remain competitive. However, in the early stages, a higher price can help to establish the product as a premium offering and create a perception of high quality.

Often,the Earlier a Product Is in Its Life Cycle