Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
a. True.
Explanation:
If there is need for purchasing goods in a company then a purchase requisition is initiated by the department. This purchase requisitions is then processed to initiate purchase order after the requirement for goods is confirmed. The purchase order is sent to external supplier to confirm purchasing of goods or services. This is a commercial document which helps control the purchasing in the organization. This document clearly mentions the quantity, price and any additional features of the product which are required by the company.
Answer:
Option (B) is correct.
Explanation:
Producer surplus is defined as the difference between the current market price of a good and the amount or cost incurred by the firm to produced the good. If the producer will be able to get the higher price for a good than the full cost of production of that good then he will earn the producer surplus.
Graphically, the producer surplus is represented by the flat top.
