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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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