Economics Questions and Answers

The middlemen plays the role of an intermediary in a distribution or transaction chain who facilitates interaction between the involved parties. The middlemen are the whoselars and retailers who specialise in performing activities relating to the purchase and sale of goods in the process of their flow from producer to the final buyers.

The owners of the business (shareholders) have little or no say in the affairs of the business, while the people at the helm of affairs who are not the owners may not put in their best.

A firm that shut down will earn zero revenue and its variable cost of producion is also zero, so the firm's total cost of production is equal to its fixed cost. However, the firm will still incur fixed cost.

Average cost is directly proportional to the total cost of goods and inversely proportional to the number of goods, so average cost decreases when the number of goods increases.

Factors that limit the application of division of labour are: size of market, production method/technology, nature of commodities, non-availability of capital, non -availability of required skilled labour, low level of technology etc.