Refer to the Graph Shown

question 123

Multiple Choice

Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $6 and a quantity of 40 units. In equilibrium, producer surplus is equal to:

• A)40.
• B)80.
• C)120.
• D)160.

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Definitions:

Strategic Sourcing

An approach to procurement that emphasizes continuous improvement and development of purchasing activities to enhance competitive advantage.

Strategic Sourcing Process

A method used by organizations to evaluate and engage suppliers with the objective of achieving cost savings, improving quality, and obtaining more favorable terms.

Sourcing Strategy

The approach an organization takes to manage procurement processes and supplier relationships to optimize cost, quality, and supply reliability.