The BCG Has Given Specific Names and Descriptions to the Four

question 330

Multiple Choice

The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization."Dogs" are SBUs that are classified as having

• A)high market growth rates and high relative market shares.
• B)low market growth rates but high relative market shares.
• C)low market growth rates and low relative market shares.
• D)high market growth rates but low relative market shares.
• E)medium market growth rates and medium relative market shares.

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Definitions:

Long-Run Total Cost

The cumulative expense incurred by a firm when all inputs are variable, intended to capture the idea of planning and adjustment in the face of changing economic landscapes.

Maximize Profits

A business objective aiming to achieve the highest possible financial gain by managing costs and optimizing revenue streams in a given market environment.

Long-Run Cost Function

A graphical or mathematical representation showing the lowest cost at which a firm can produce any given level of output in the long run, where all inputs are variable.

Positive Output

A situation where the production of goods or services results in a quantity greater than zero.