(Table) in the Table Provided, P₁ Through P₄ Are the Prices

question 209

Multiple Choice

(Table) In the table provided, P₁ through P₄ are the prices that four consumers are willing to pay for different quantities of a public good. If a demand curve were created for this public good, the price associated with the third unit would be
$\begin{array}{|c|c|c|c|c|}\hline Q & P_{1} & P_{2} & P_{3} & P_{4} \\\hline 1 & 9 & 8 & 7 & 6 \\\hline 2 & 7 & 6 & 5 & 4 \\\hline 3 & 5 & 4 & 3 & 2 \\\hline 4 & 3 & 2 & 1 & 0 \\\hline\end{array}$

• A) $5.
• B) $9.
• C) $12.
• D) $14.

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Definitions:

Customers

Individuals or entities that purchase goods or services from a business, contributing to the company's revenue.

Revenue Recognition Principle

An accounting standard requiring revenue to be recognized in the accounting period when it is earned and measurable.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, commonly used in the United States.

Business Entity Assumption

An accounting principle that treats a business as a separate legal entity from its owners, requiring separate accounting records.