1. An industry experiencing slow growth and high prices is best characterized as being in the:

A. Mature stage.

B. Shakeout stage.

C. Embryonic stage.

2. Which of the following statements about the industry life-cycle model is least accurate?

A. The model is more appropriately used during a period of rapid change than during a period of relative stability.

B. External factors may cause some stages of the model to be longer or shorter than expected, and in certain cases, a stage may be skipped entirely.

C. Not all companies in an industry will experience similar performance, and very profitable companies can exist in an industry with below-average profitability.