Cash cows are typically found in the Maturity stage of the industry life cycle.
What is industry life cycle?
A business or industry's development based on its stages of growth and decline is referred to as going through its industrial life cycle. The four stages of an industry's life cycle are introduction, growth, maturity, and decline.
How is the industry life cycle used?
An industry's life cycle has four phases: expansion, peak, contraction, and trough. Where a firm is in the cycle will be determined by the analyst, who will then utilize this knowledge to forecast future financial performance and calculate forward valuations (e.g., forward price-earnings ratios).
Why is industry life cycle important?
You can learn vital information from industry cycles about supply networks, corporate strategy, and earnings as well as growth possibilities, opportunities, and obstacles. The business cycle has an impact on both firm strategy and earnings.
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Answer:
Cost of Goods Sold( COGS)
Explanation:
Costs of goods sold ( COGS)or cost of sales is the expense incurred in manufacturing goods sold in a period. COGS is composed of the direct cost incurred in manufacturing goods sold by a business. The direct cost includes direct materials, labor, and direct overhead costs. Direct labor is the total of wages and salaries paid to workers involved directly in the production process.
Calculation of the cost of goods sold involves adding beginning inventory to purchases and subtracting the ending inventory.
Answer:
All firms get zero profit
Explanation:
Because
When patent expires, it causes free entry of new firms which increases market supply. The market supply curve shifts rightward which decreases price lower than P1. In new long run equilibrium, all firms earn zero economic profit
Answer:
DECIDE
Explanation:
D - define the problem
E - establish the criteria
C - consider all alternatives
I - identify the best alternative
D - develop and implement a plan of action
E - evaluate and monitor the solution and give feedback when necessary
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