Use the Following Diagram to Answer the Following Questions

question 63

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Gallons. Suppose that the production level was at 2,000 gallons where MC=MB. What would be the maximum amount that consumers would pay producers to reduce production (and pollution) ?

• A) $2 per gallon.
• B) $12.50 per gallon.
• C) $1.50 per gallon.
• D) $5 per gallon.

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Definitions:

Inventory Value

The total cost or market value of all the goods and materials held by a company.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit.

Credit Sales

Sales made on credit, allowing the buyer to pay at a later date.

Days' Sales Outstanding

A financial metric that shows the average number of days it takes a company to collect payments after a sale has been made.