In the Boston Consulting Group (BCG) Matrix, a Business Unit

question 116

Multiple Choice

In the Boston Consulting Group (BCG) matrix, a business unit that has a low anticipated growth rate but a high market share is known as a ________.

• A) cash cow
• B) star
• C) dog
• D) question mark

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Definitions:

Minimum Cost

The lowest possible expense at which a company can produce a good or service without sacrificing quality.

Efficient Amount

The quantity of a good or service that maximizes social welfare, where marginal benefits equal marginal costs.

Socially Optimum

The most desirable level of output or activity from a societal perspective, balancing costs and benefits to achieve maximum social welfare.

Coal Mine Pollution

The release of harmful substances into the environment as a result of coal mining activities, affecting air, water, and soil quality.