Which statement is correct about the market growth stage?
A. Industry profits tend to increase in the beginning of the stage.
B. Industry profits decrease toward the end of the stage.
C. More companies enter the industry.
D. Industry sales increase.
E. All the above are correct statements.
Answer: (E) is correct because all of the statements are correct. Industry profits initially do increase (A), but later industry profits start to decline (B). Also, more companies enter the industry because they see that industry profits initially are increasing (C). Furthermore, industry sales increase (D) because of heightened consumer awareness. (A), (B), (C), and (D) are all correct; consequently, (E) is the correct answer.