As you look at the Product Life Cycle shown above, you notice that the space between sales and profits starts to widen in the Growth phase. Why? (Choose all responses that apply.) Consumers have stopped buying the product. Price has been affected because competition has entered. O Sales have peaked. The company is starting to innovate.

When will a business shut-down in the short-run?

If you do not have a large market for your product or service, what should you do to be sure it retains its value?     a)Make sure to scale your business and its cost to the size of your market.     b)Identify other products or services that you could include alongside the original in order to increase market size.     c)Consider ways to substantially change your product or service in order to increase your market size.     d)Shelve your idea; perhaps the market will increase in future.

How can a business compete with other businesses that sell the same products?         Lower the price of the competing item.         Produce less of the competing item.         Raise the price of the competing item.         Produce more of the competing item.