-Intermediaries Perform Three Basic Functions

question 65

Multiple Choice

-Intermediaries perform three basic functions. According to Figure 12-2 above, Box A represents a(n) __________.

• A)middleman function
• B)logistical function
• C)facilitating function
• D)operational function
• E)transactional function

---

Definitions:

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a given period.

ATC

Average Total Cost, the sum of all production costs divided by the quantity of output produced, reflecting the average cost per unit of output.

AVC

Average Variable Cost is the total variable cost per unit of output, which is calculated by dividing total variable costs by the quantity of output.

MC

Marginal Cost, the increase or decrease in the total cost of a production run for making one additional unit of an item.