Multiple Choice QuestionIncreased sales and profits are typical of theMultiple choice question.growth stagedecline stagematurity stageintroductory stage

Break Down the Problem

1. Identify the stages of a product life cycle: growth, decline, maturity, and introductory stages.
2. Understand the characteristics associated with each stage in terms of sales and profits.

Relevant Concepts

1. Introductory Stage: In this stage, sales are low as the product is just launched, and there might be initial costs leading to low or negative profits.
2. Growth Stage: Characterized by increasing sales and profits as the product gains market acceptance.
3. Maturity Stage: Sales growth slows down, and profits may stabilize or begin to decline due to market saturation and competition.
4. Decline Stage: Sales and profits decrease as the product loses market appeal.

Analysis and Detail

• The growth stage of a product life cycle is typically marked by a significant increase in sales and profits due to increased consumer awareness and acceptance.
• The maturity stage involves stable sales and profit levels, while the decline stage shows a downturn in both metrics.
• The introductory stage does not exhibit increased sales or profits.

Verify and Summarize

Given that the question focuses on which stage is characterized by increased sales and profits, the growth stage is the only correct answer among the options provided.

Final Answer

The correct answer is: growth stage.