All of the Following Are True About Product Life Cycles

Multiple Choice

All of the following are true about product life cycles except for

A) Strong sales growth and low barriers to entry often characterize the early stages of a product's introduction
B) New entrants have substantially poorer cost positions, as a result of their small market shares when compared to earlier entrants.
C) Later phases are characterized by slower market growth rates
D) During the high growth phases, firms usually experience high positive operating cash flow
E) The introduction of product enhancements can extend a firm's product life cycle