Which of the Following Statements Illustrates the 80/20 Rule

question 47

Multiple Choice

Which of the following statements illustrates the 80/20 rule?

• A) "80 percent of our target market doesn't respond to our marketing mix, and we only have a 20 percent market share."
• B) "Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business."
• C) "20 percent of our marketing effort is wasted, but we don't know which 20 percent."
• D) "We don't know whether our profits are 20 percent higher than we deserve, or only 80 percent of what might be easily obtained."
• E) None of these is correct.

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Definitions:

Equitable Outcome

An equitable outcome is a situation or result in economic transactions or distributions that is considered fair or just among all parties involved.

Contract Curve

In economics, a line on an Edgeworth box diagram representing the set of optimal allocations between two parties.

Egalitarian View

A perspective advocating for equal rights, benefits, and opportunities for all members of society.

Equity

Equity refers to ownership interest in a company, often represented by stocks, providing a claim on the company's assets and earnings.