Use the Following Table to Answer the Question : Table

question 10

Multiple Choice

Use the following table to answer the question : Table 15-3: shows the average cost [AC],marginal cost [MC],and demand [D] curves for a natural monopoly;Qi denotes quantity and Pi denotes price.
-Refer to Figure 15-3.Which of the following price and output combinations would an unregulated monopolist choose?

• A)P2,Q2
• B)P1,Q1
• C)P3,Q2
• D)P4,Q3

---

Definitions:

Demand Pattern

The trend or tendency of buyers purchasing certain quantities of a product at various times.

Overstock

Occurs when a company holds more inventory than it can sell, potentially leading to high holding costs and reduced profitability.

Product Availability

The extent to which a product can readily be found in the market and is accessible to customers.

Tailored Postponement

A supply chain strategy where the manufacturing process is initiated but the final configuration of the product is delayed until the last possible moment to better meet customer demand.