Which of the following is FALSE regarding the product life cycle theory?
A. Domestic production begins in stage 1, peaks in stage 2, and slumps in stage 3.
B. The personal computer industry has entered the maturing product stage
C. Foreign competition begins to emerge toward the end of stage 1.
D. Exports by the innovating firm's country begin in stage 1 and peak in stage 2.
E. In stage 2, foreign competitors expand their productive capacity.
Answer: B