If a firm is facing intense competition on the prices of its product and in turn it is leading to a decrease in the firm's profit margins, then the product is said to be in which stage of its life cycle?
A)Decline
B)Introduction
C)Maturity
D)Growth
E)Deterioration

Question

Quizplus · Accepted Answer

When a product is in the maturity stage of its life cycle, it has already established itself in the market and is competing with other products. As a result, there is usually intense competition, and the focus is on price. Low profit margins are common in this stage, and it is essential to maintain market share to sustain long-term profitability. Therefore, the given scenario suggests that the product is in the maturity stage.

If a Firm Is Facing Intense Competition on the Prices