Consider the following statements. Which is true about product life cycle theory?   (I) In the early stages of the product life cycle, the demand for the new product is relatively insensitive to the price and thus a pioneering firm can charge a relatively high price.   (II) It predicts that over time the U.S. switches from an exporting country of new products to an importing country.   (III) When plotting "quantity sold" versus "time" in U.S. , the initial sharp increasing in production flattens out or even reduces over the time.   Group of answer choices   none of the others   (I), (II), (III)   Only (III)   Only (I)   Only (II)

ENGR.ECONOMIC ANALYSIS
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Consider the following statements. Which is true about product life cycle theory?

 

(I) In the early stages of the product life cycle, the demand for the new product is relatively insensitive to the price and thus a pioneering firm can charge a relatively high price.

 

(II) It predicts that over time the U.S. switches from an exporting country of new products to an importing country.

 

(III) When plotting "quantity sold" versus "time" in U.S. , the initial sharp increasing in production flattens out or even reduces over the time.

 

Group of answer choices

 

none of the others

 

(I), (II), (III)

 

Only (III)

 

Only (I)

 

Only (II)

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