Independent Intermediaries That Represent Two or More Sellers and Usually

question 210

Multiple Choice

Independent intermediaries that represent two or more sellers and usually offer customers complete product lines in a restricted territory are called

• A) commission merchants.
• B) manufacturers' agents.
• C) selling agents.
• D) truck wholesalers.
• E) brokers.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

The phenomenon where an increase in production leads to higher costs per unit due to inefficiencies that arise from scaling up operations.

Increasing Returns

An increase in a firm’s output by a larger percentage than the percentage increase in its inputs.

Diminishing Returns

A principle stating that after a certain point, additional investment or effort yields progressively smaller increases in output.