Microsoft Windows Generates Considerable Income for Its Parent Company but Is

question 70

Multiple Choice

Microsoft Windows generates considerable income for its parent company but is expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. Based on this information, Windows would be categorized under the BCG market share/market growth matrix as a:

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

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Definitions:

Income Effect

The variation in a person's or an economy's earnings and the impact of this variation on the demand for a specific product or service.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one product for another.

Diminishing Marginal Utility

The principle stating that as a person consumes more of a good, the additional satisfaction derived from consuming an additional unit lessens.

Gift Registries

Lists created by individuals or couples indicating the gifts they wish to receive for a special occasion, such as a wedding or baby shower.