Under the Assumptions of the BCG Matrix,a 'Star' Has A

question 26

Multiple Choice

Under the assumptions of the BCG Matrix,a 'star' has a:

• A) large market share in a rapidly growing industry
• B) large market share in a slow growth industry
• C) small market share in a rapidly growing industry
• D) small share of a slow growth market
• E) moderate market share in a slow growth industry.

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Definitions:

Long-Run

A period in economic theory during which all factors of production and costs are variable, allowing for full adjustment to changes.

Economic Profit

The gap between the total earnings of a business and all its costs, encompassing out-of-pocket and opportunity costs.

Perfect Competitor

A Perfect Competitor refers to a hypothetical firm in a perfectly competitive market that cannot influence the market price and must accept it as given.

Short Run

A period in economics during which some factors, like capital, are fixed and cannot be changed, emphasizing immediate effects.