Corn Refiners Buy Shelled Corn and Convert It into a Variety

question 26

Multiple Choice

Corn refiners buy shelled corn and convert it into a variety of products,including high fructose corn syrup.The refiners then sell the syrup to soda and food product companies for use in foods and beverages.The corn refiners represent the _____ sector of the business market.

• A) channel
• B) reseller
• C) producer
• D) government
• E) distributor

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, and very easy entry and exit, leading to firms being price takers.

Natural Monopoly

A market condition where a single firm can supply a product or service at a lower cost than two or more firms, due to economies of scale.

Economies of Scale

The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Persistent

Continuously existing or enduring over a prolonged period.