27.   Regarding product life cycle, good marketing managers know that:

a)    all competitors lose money during the sales decline stage.
Not necessarily, those with lower production costs are probably still reaping some benefits in this stage.

b)    they are getting longer.
That would be wonderful, but unfortunately technology and globalization make product life cycles actually shorter.

c)    industry sales reach their maximum during the market growth stage.
Actually, industry sales reach their maximum during the maturity stage, however the growth rate of sales peaks during the growth stage.

d)    firms earn their biggest profits during the market introduction stage.
No, the biggest profits are earned during the market growth stage.

e)    industry profits reach their maximum during the market growth stage.
This is the correct answer.

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