Distributor Is

question 56

Multiple Choice

Distributor is

• A)an imprecise term for intermediaries that perform a variety of distribution functions,including selling,maintaining inventories,extending credit,and so on.
• B)the term for an intermediary that sells only to manufacturers.
• C)the term for an intermediary that takes possession of a product,alters it in some way,and then sells it to the ultimate consumer.
• D)the term for an intermediary that sells only to consumers.
• E)the term for an intermediary that sells only to other intermediaries.

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Definitions:

Returns to Scale

The rate at which production output increases in response to proportional increases in all inputs.

Average Cost

The average cost is the total cost of production divided by the number of units produced, reflecting the cost per unit of output.

Marginal Cost

The supplementary expenditure required to produce an extra unit of a product or service.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.