Which of the following statements about the economic justification for wholesaling is True?
A) Wholesalers are better able to sell to ultimate consumers than other resellers.
B) Economies of scale result from the specialization of wholesaling middlemen performing functions that . might otherwise require several departments within a manufacturer's organization.
C) Wholesalers do not create economies of skill.
D) Transaction economies are introduced into wholesaling when the channel of distribution is direct.
E) All of the above statements about the economic justification for wholesaling are True.

Question

Quizplus · Accepted Answer

Wholesalers create economies of scale by specializing in distribution functions, which can be more efficient than manufacturers handling these tasks themselves.

Which of the Following Statements About the Economic Justification for Wholesaling