In Its Industry Norms and Key Business Ratios, Dun

question 79

Multiple Choice

In its Industry Norms and Key Business Ratios, Dun & Bradstreet reported that Q₁, Q₂, and Q₃ for 2,037 gasoline service stations' sales to inventory ratios were 20.8, 33.4, and 53.8, respectively.From this we can conclude that ___.

• A)68% of these service stations had sales to inventory ratios of 20.8 or less
• B)50% of these service stations had sales to inventory ratios of 33.4 or less
• C)50% of these service stations had sales to inventory ratios of 53.8 or more
• D)95% of these service stations had sales to inventory ratios of 20.8 or more
• E)99% of these service stations had sales to inventory ratios of 20.8 or more

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Definitions:

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximizing overall welfare or social utility.

Output Quantity

The amount of goods or services produced by a company or sector during a specific period.

Social Planner

An idealized figure in economic theory responsible for designing economic policies or interventions to achieve optimal allocation of resources and welfare in a society.

Social Cost

The total cost to society, including both private costs incurred by producers and external costs to other parties not involved in the transaction.