Expansion Stage of Industry Life Cycle

A

The industry life cycle refers to the stages an industry goes through from its introduction to its eventual decline. These stages are: introduction, growth, maturity, and decline. The expansion stage is the second stage of the industry life cycle.

Option A - Firm operations get more stable and dependable: This statement is incorrect for the expansion stage because during this stage, firms are experiencing rapid growth and are likely to be expanding their operations to meet the increasing demand. The growth in demand and expansion of operations can create instability and challenges for firms during this stage.

Option B - No rapid growth in demand: This statement is also incorrect for the expansion stage. The expansion stage is characterized by rapid growth in demand as the industry gains acceptance and customers become more familiar with the products and services offered. As demand grows, firms are likely to be expanding their production capacity and hiring more employees to meet this demand.

Option C - Costs get stable rather than decreasing or increasing: This statement is also incorrect for the expansion stage. During the expansion stage, firms may experience increasing costs as they expand their operations to meet growing demand. This may include investing in new production facilities, hiring additional employees, and increasing marketing and advertising efforts.

Option D - Sales growth decline as new products are developed: This statement is also incorrect for the expansion stage. During this stage, sales growth is typically strong as demand for the industry's products and services increases. The introduction of new products may also contribute to this growth, as it can attract new customers and expand the industry's overall market.

Therefore, the correct answer is none of the above.