Use the Following to Answer Questions

question 124

Multiple Choice

Use the following to answer questions:
Figure: Producer Surplus
-(Figure: Producer Surplus) In the diagram, if the market price of coffee is $6, how much producer surplus do suppliers earn?

• A) $25
• B) $125
• C) $75.50
• D) $62.50

---

Definitions:

Kanban Size

Refers to the quantity of work or inventory items that a Kanban card or signal controls in a Kanban system, aiming to optimize workflow and reduce waste in a pull-based production system.

Setup Cost

The expenses incurred to prepare equipment or processes for manufacturing or service provision.

Carrying Cost

Expenses associated with holding or storing inventory over a period, including warehousing, insurance, depreciation, and opportunity costs.

Safety Stock

An additional quantity of an item held in the inventory to reduce the risk that the item will be out of stock.