The Law of Decreasing Returns Applies to

question 51

Multiple Choice

The law of decreasing returns applies to

• A) the long-run average cost curve.
• B) average total cost.
• C) diseconomies of scale.
• D) changes in a variable input with a given quantity of fixed inputs.
• E) changes in a fixed input with a given quantity of variable inputs.

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Definitions:

BCG Growth-Market Share Matrix

A strategic planning tool that uses two dimensions: market growth rate and market share to categorize the business portfolio into four types: Stars, Question Marks, Cash Cows, and Dogs.

Strategic Business Units

Strategic business units are distinct divisions within a larger corporation, each focusing on a specific market segment or product line, and possessing its own strategy, resources, and objectives.

Dominant Market Share

A situation in which a company, product, or service holds a majority portion of the total sales in its market.

New Product Development

The complete process of bringing a new product or service to the market, from idea generation and concept testing to design, production, and marketing.