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Markwin Electronics is a company that only sells products online. Orders are taken through an interactive Web site, and goods are shipped out through a small warehouse the company owns. Markwin employees also handle the shipment of goods to desired destinations. How could marketing intermediaries help Markwin expand its business?
Average Cost
The total cost divided by the number of goods produced, also known as cost per unit.
Total-Cost Curve
A graph that shows the relationship between the total cost incurred by a firm and the level of output produced.
Production Function
An equation or graph showing the maximum output that can be produced with a given set of inputs, such as labor and capital, under existing technology.
Marginal Product
Enhanced output originating from the inclusion of an additional input unit.
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