DEFINITION of 'Growth Curve'
A graphical representation of how a particular quantity increases over time. Growth curves are used in statistics to determine the type of growth pattern of the quantity  be it linear, exponential or cubic. Once the type of growth is determined a business can create a mathematical model to predict future sales. An example of a growth curve is a country's population over time.
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BREAKING DOWN 'Growth Curve'
The shape of the growth curve can make a big difference when businesses determine whether to launch a new product or enter a new market. Slow growth markets are less likely to be appealing because there is less room for profit, while exponential growth could mean that the market could see a lot of competitors enter the market.
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