-Refer to the Above Figure $\mathrm { P } _ { 5 }$

question 226

Multiple Choice

-Refer to the above figure.What are the price and quantity if this monopolist is required to use average cost pricing?

• A) \(\mathrm { P } _ { 5 }\) , \(\mathrm { Q } _ { 1 }\)
• B) \(\mathrm { P } _ { 3 }\) , \(\mathrm { Q } _ { 3 }\)
• C) \(P _ { 2 }\) , \(\mathrm { Q } _ { 1 }\)
• D) \(P _ { 1 }\) , \(\mathrm { Q } _ { 4 }\)

---

Definitions:

Default Risk

The possibility that a borrower will be unable to make the required payments on their debt obligations.

Days Payable Outstanding

A financial ratio that measures the average number of days a company takes to pay its suppliers; an indicator of how efficiently a company manages its payables.

Cash Receipts

The collection of money, including coins, currency, checks, and electronic transfers, received by a business or organization.

Default Risk

The possibility that a debtor will fail to fulfill their financial liabilities as agreed upon.