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

question 173

Multiple Choice

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

Production Function

A mathematical relationship expressing the maximum output that can be produced from a given set of inputs, showing the technological relationship between inputs and outputs.

Returns To Scale

The rate at which output increases as inputs are increased proportionally in the production process.

Input

Resources, materials, or data entered into a system for processing or production.

Production Function

A mathematical representation of the relationship between inputs (such as labor and capital) and the maximum amount of output that can be produced from those inputs.