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Alekssandra [29.7K]
3 years ago
13

In the context of the BCG matrix, which of the following businesses would be classified as a dog? a. Bigs Steel, a metal manufac

turer that has negligible market share in a slow-growing industry b. Ultimo Phone, a smartphone manufacturer that is the market leader in a rapidly growing industry c. Cleep Sweep, a detergent company that has been earning steady profits in a slow-growing industry d. Brain Cash, a finance company that is struggling for market share in a fast-growing industry
Business
1 answer:
pickupchik [31]3 years ago
7 0

Answer:

<em>A. Big steel, a metal manufacturer that has negligible market share in a slow-growing industry</em>

Explanation:

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Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $
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Answer:

Option (A) is correct.

Explanation:

Given that,

Implicit costs per week = $200,000

Average explicit cost per banana = $0.25 per banana

Per week bananas sold = 1 million

Explicit cost = Average explicit cost per banana × No. of banana sold

                    = $0.25 × 1,000,000

                    = $250,000

Total revenue = No. of banana sold × Selling price of each banana

                        = 1,000,000 × $0.50

                        = $500,000

Accounting profit = Total revenue - Explicit cost

                             = $500,000 - $250,000

                             = $250,000

Economic profit:

= Total revenue - Explicit cost - Implicit costs

= $500,000 - $250,000 - $200,000

= $50,000

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