Producers Rely on a Class of Intermediaries Called Value-Added Resellers

question 91

Multiple Choice

Producers rely on a class of intermediaries called value-added resellers (VARs) to assist with which of the following functions?

• A) transport the goods from the producer to the retail outlets
• B) assist with advertising, in-store displays, and other promotional efforts
• C) provide market information
• D) divide bulk quantities into smaller packages
• E) complete or customize solutions for customers

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Definitions:

Long-Run Average Cost

The average cost per unit of output when all inputs, including capital, are variable, allowing for the adjustment of all factors in production to achieve the lowest cost.

Output

The quantity of goods or services produced in a given period of time.

Returns to Scale

The change in output resulting from a proportionate increase in all inputs (factors of production), where increasing, constant, and decreasing returns to scale can occur.

Long-Run Average Total Cost

The average cost per unit of output in the long term when all inputs can be varied by the firm and economies of scale have been reached.