The growth phase of the product life cycle is always dynamic. Which of the following does not occur in this phase?
A. Profits increase as sales increase.
B. Profits increase as economies of scale are attained.
C. Some new competitors may enter the market with similar products.
D. Some competitors will exit in an "industry shakeout."
E. Price competition with protracted price wars erodes profits.
Answer: E. Price competition with protracted price wars erodes profits.