A Middleman

question 249

Multiple Choice

A middleman

• A) attempts to prevent buyers from finding sellers.
• B) promotes trade by lowering the transaction costs of buyers and sellers.
• C) acts as a liaison between top management and the hourly employees.
• D) adds to the seller's expense and the buyer's price without providing a service to either.

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Definitions:

Shut Down

A short-term decision by a company to cease operations temporarily due to unfavorable market conditions or to minimize losses when variable costs exceed total revenues.

Maximizes Profit

The strategy or process implemented to increase the difference between total revenue and total costs to the highest possible amount.

Marginal Revenue

Income gained by selling an additional unit of a product or service.

Marginal Cost

The increased expenditure incurred from producing one more unit of a product or service.