In the Du Pont Model,profit Margin Is a Ratio of

question 152

Multiple Choice

In the Du Pont model,profit margin is a ratio of

• A)income to sales.
• B)income to assets.
• C)sales to income.
• D)sales to assets.

---

Definitions:

Efficiency Loss

The loss of economic efficiency that can occur when equilibrium for a good or service is not achieved, leading to potential welfare or opportunity costs.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often due to higher market prices.

Underproduction

The situation where the production of goods or services is below an optimal level or capacity, often leading to shortages.