Intermediaries must cover the costs incurred at each link in the distribution channel and earn a profit to remain in business.This causes the consumer to pay higher prices for products.

Question

Quizplus · Accepted Answer

Intermediaries such as wholesalers, retailers, and distributors add their own markup to the cost of the product to cover their expenses and earn a profit. This results in higher prices for the consumer.

Intermediaries Must Cover the Costs Incurred at Each Link in the Distribution