Question

.Typically profit is negative in which stage of the product life cycle?​

Answer 1

Answer:

During the market development stage his per-unit profits are negative. Sales volume is too low at existing prices. However, during the market growth stage unit profits boom as output rises and unit production costs fall.

Explanation:

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Answer 2

Decline Stage.

There are five stages of the product life cycle:

1) Introduction stage

2) Growth stage

3) Maturity stage

4) Decline stage

5) Abandonment stage

When the product reaches the decline stage, its market share and growth start to saturate and prices of the product start to decline because of cut-throat competition as firms fight to retain their market share. Sales and profit rapidly fall due to no improvement in the product. then, the product is gradually replaced by some new products in the market because they satisfy more customer needs and sooner the product is disappeared from the market. So typically, profit is negative in the decline stage of the product life cycle.