Procter & Gamble and Kellogg often face __________ average costs for distribution tasks when they attempt to perform them by themselves.

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Quizplus · Accepted Answer

Procter & Gamble and Kellogg are both large companies with extensive product lines, which means that if they want to perform distribution tasks by themselves, they have to maintain their own logistics infrastructure (such as warehouses and transportation networks) to ensure that their products reach retailers and end consumers. Such infrastructure requires substantial investment, both in terms of capital and operating costs. Additionally, if they have to transport and store their products in different regions and countries, they have to deal with complex regulations, customs, and taxes, which can further increase their distribution costs. Therefore, it's quite likely that Procter & Gamble and Kellogg face high average costs for distribution tasks if they try to handle them alone.

Procter & Gamble and Kellogg Often Face __________ Average Costs