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    Question

    Which stage of PLC typically sees declining profits

    despite stable sales?
    A Introduction Correct Answer Incorrect Answer
    B Growth Correct Answer Incorrect Answer
    C Maturity Correct Answer Incorrect Answer
    D Decline Correct Answer Incorrect Answer
    E Innovation Correct Answer Incorrect Answer

    Solution

    In maturity, competition increases, margins reduce even if sales are stable. Why Other Options Are Incorrect • A: Low initial sales. • B: Rising profits. • D: Falling sales. • E: Not PLC stage. Banking Example: Highly competitive credit card market.

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