Respuesta :
Answer:
The options for this question are the following:
A. product life-cycle theory
B. Ricardo's theory
C. theory of absolute advantage
D. theory of comparative advantage
The correct answer is A. product life-cycle theory.
Explanation:
In Economics, there is a theory that explains the stages a product goes through with respect to its production and sales, known as the Theory of the life cycle of a product. It was defined by the American economist Raymond Vernon who assured that every product or service undergoes a similar evolution in the market. It also identifies 4 stages in that evolution:
- Introduction
- Increase
- Maturity
- Slope
This theory describes that evolution from the launch of the product to its final decline and disappearance. It may happen, however, that it is a matter of lengthening the life cycle of your product through different strategies: relaunching, updating, prolonging the maturity phase or even maintaining the commercialization of the product at that stage of decline even though demand is low.
