A Business That Purchases Products in Large Quantities from Producers

question 119

Multiple Choice

A business that purchases products in large quantities from producers and then sells it to another entity is known as a _____.

• A)broker
• B)retailer
• C)distributor
• D)wholesaler
• E)consumer

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Definitions:

Total Cost

The sum of fixed costs and variable costs incurred by a firm in the production of a good or service.

Break-even Price

The price level at which total revenues are equal to total costs, resulting in neither profit nor loss.

Economic Losses

The decrease in economic value arising from factors such as poor decisions, market shifts, or external disruptions affecting profitability.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.