Producers Benefit from Using Intermediaries Because They

question 20

Multiple Choice

Producers benefit from using intermediaries because they:

• A) are generally backlogged with orders.
• B) refuse to store products for longer than a couple of days.
• C) operate less expensively.
• D) save a lot of work.
• E) offer greater efficiency in making goods available to target markets.

---

Definitions:

Scale of Production

Refers to the level at which production activities are aggregated or expanded, affecting the unit costs and capability of the production process.

Lower

To decrease in position, value, or condition.

Average Total Cost

The total cost of production divided by the number of units produced, encompassing both fixed and variable costs.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price taker behavior.