Answer:
The answer is: B) Introduction
Explanation:
During the introduction stage of the product life cycle, a company is typically unable to take advantage of economies of scale. This is because the product is still being introduced to the market and has not yet reached a high level of sales volume. As a result, production costs are likely to be high due to lower production levels, leading to a lack of economies of scale.
As the product moves into the growth and maturity stages of the life cycle, sales volumes increase, leading to lower per-unit production costs and allowing the company to take advantage of economies of scale. This is because as production levels increase, fixed costs are spread out over a larger number of units, resulting in lower average costs per unit.
https://brainly.com/question/10112889
Answer:The answer is: B) Introduction
Explanation:
During the introduction stage of the product life cycle, a company is typically unable to take advantage of economies of scale. This is because the product is still being introduced to the market and has not yet reached a high level of sales volume. As a result, production costs are likely to be high due to lower production levels, leading to a lack of economies of scale.
As the product moves into the growth and maturity stages of the life cycle, sales volumes increase, leading to lower per-unit production costs and allowing the company to take advantage of economies of scale. This is because as production levels increase, fixed costs are spread out over a larger number of units, resulting in lower average costs per unit.
