Use the Figure Below to Answer the Following Questions

question 90

Multiple Choice

Use the figure below to answer the following questions. Figure 5.3.1
-Refer to Figure 5.3.1.If the price is $15 a unit,

• A)production is efficient.
• B)marginal social benefit equals marginal social cost.
• C)deadweight loss is zero.
• D)the sum of consumer surplus and producer surplus is maximized.
• E)all of the above

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Definitions:

Days' Sales

A financial ratio that measures the average number of days a company takes to convert its inventory into sales.

Inventory Turnover

A financial metric measuring the rate at which a company sells and replaces its stock of goods during a particular period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Merchandise Inventory

The total value of goods held by a company for the purpose of resale during the normal course of business operations.