Producer surplus: a. is the difference between the true value of a good and the amount the firm wants to receive. b. is the difference between the maximum amount a person is willing to pay for a good and its current market price. c. represents the minimum amount a firm must receive for a particular good in order to be able to produce the good. d. is the difference between the current market price and the cost of production for the firm.

Highland company produces a lightweight backpack that is popular with college students. standard variable costs relating to a single backpack are given below

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product