In the BCG Matrix, a Division with a High Relative

question 70

Multiple Choice

In the BCG Matrix, a division with a high relative market share position in a low-growth industry can be described as a

• A) Star.
• B) Cash Cow.
• C) Question Mark.
• D) Dog.
• E) Failure.

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Definitions:

Long Run

A period in which all factors of production and costs can be fully adjusted, including entry and exit of firms.

Economic Profits

Profits that exceed the opportunity costs of all inputs, indicating a return beyond the norm expected in competitive markets.

Total Cost

The sum of all costs incurred in the production of goods or services, including both fixed and variable costs.

Profitable Level

The point at which a business or economic activity generates revenue that exceeds its costs, resulting in a financial gain.