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QuizMultiple Choice

Study Guide and Quiz

Question 1 • Introduction to Business A

A company is usually unable to take advantage of economies of scale during the __________ stage of the product life cycle.

Answer
A
Saturation
B
Introduction
C
Growth
D
Maturity

Explanation

During the introduction stage, a product is new and sales are usually low, so production volume is not yet large enough to spread fixed costs across many units. As a result, the company is usually unable to benefit from economies of scale. The correct choice is Introduction.

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