As Resources Move from Low-Valued Uses in a Resource Market

question 157

Multiple Choice

As resources move from low-valued uses in a resource market to highly-valued uses in another resource market, the price paid to the resource in the highly-valued market will

• A)not be affected, if the change is temporary
• B)increase, if the change is temporary
• C)remain the same
• D)decrease
• E)increase, if the change is permanent

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Definitions:

BCG Matrix

A strategic planning tool that classifies a company’s business units or products into four categories (Stars, Question Marks, Cash Cows, Dogs) based on market growth and market share.

Cash Cows

Products or business units that generate significantly more money than they consume, providing a steady flow of profit to the company.

BCG Matrix

A framework for analyzing a company's product portfolio, based on market growth and market share.