Prices always steadily decline for a product in the decline stage of t

QUESTION

Prices always steadily decline for a product in the decline stage of the product life cycle.

Indicate whether the statement is true or false
a. True
b. False

ANSWER

ANSWER: False

When only one firm is left in the market, prices begin to stabilize, but they may eventually rise dramatically if a product survives and moves into the specialty goods category, as horse-drawn carriages and vinyl records have.