When Criticized About the Value of Intermediaries, Marketers and Resellers

question 10

Multiple Choice

When criticized about the value of intermediaries, marketers and resellers respond that intermediaries ________.

• A) are too few in number
• B) are inefficient
• C) provide only necessary services that must be provided by someone
• D) actually underprice their services
• E) are too competitive and difficult to work with

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Definitions:

ΔTR/Δq

The change in total revenue that results from selling one additional unit of a product, essentially another term for marginal revenue.

Marginal Revenue

Earnings obtained from the sale of one more unit of a good or service.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, reaching a state of balance.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to price-takers behavior.