Which of the following is true of profits in the maturity stage of the product life cycle?
A) They are negative.
B) They are low.
C) They peak or are declining.
D) They are rapidly rising.
E) They are slowing rising.

Question

Quizplus · Accepted Answer

In the maturity stage of the product life cycle, competition is at its peak, and new entrants are continually entering into the market. Consequently, profits tend to peak or decline due to the high competition and sky-high marketing and advertising expenses that firms need to incur to maintain their market share. Hence, profits are often low or dwindling.

Which of the Following Is True of Profits in the Maturity