In an industry life cycle,the shake-out phase ends when:
A) the firms introduce new products or services.
B) the competition between firms increases.
C) the rapid die-off of firms stops.
D) the growth phase begins.

Question

Quizplus · Accepted Answer

The shake-out phase is characterized by a rapid die-off of firms due to increased competition and market saturation. This phase comes to an end when the rate of firm exits slows down, indicating that the weaker firms have been weeded out and the remaining ones have stabilized. Thus, choice C - "the rapid die-off of firms stops" - is the best answer. Choices A and D both suggest the start of a new phase, but they do not necessarily signal the end of the shake-out phase. Choice B is incorrect because it describes a feature of the shake-out phase, rather than a condition that ends it.

In an Industry Life Cycle,the Shake-Out Phase Ends When