In the Boston Consulting Group (BCG) Business Portfolio Model for Analysis

question 49

Multiple Choice

In the Boston Consulting Group (BCG) business portfolio model for analysis of a firm's strategic business units, or SBUs, the horizontal axis reflects

• A) market growth rate.
• B) marketing efficiencies.
• C) industry attractiveness.
• D) market segment size.
• E) relative market share.

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Definitions:

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay.

Economic Profit

The total revenue of a firm minus its explicit and implicit costs, essentially measuring the excess beyond the break-even point.

Price Discrimination

Price Discrimination occurs when a seller charges different prices for the same product or service to different customers, based on factors other than the cost of production.

Individual Demand

The quantity of a good or service that a single consumer is willing and able to purchase at various prices.