The correct answer is D. Maturity.
Explanation:
1. The product life cycle consists of four stages: Introduction, Growth, Maturity, and Decline.
2. Economies of scale refer to cost advantages that a company can achieve when it produces on a large scale, leading to lower average costs per unit as production increases.
3. During the Maturity stage of the product life cycle, the product has reached a stable level of sales, and the market becomes saturated with competitors.
4. At this stage, the company is usually unable to take advantage of economies of scale since the market is already well-established, and the competition is high, making it difficult to significantly increase production volume to reduce costs.
5. Therefore, the company faces challenges in achieving further cost reductions through economies of scale during the Maturity stage of the product life cycle.
