Middlemen such as wholesalers have lower distribution costs because they operate with economies of scale.

Name: Middlemen such as wholesalers have lower distribution costs because they operate with economies of scale.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Middlemen such as wholesalers purchase goods in bulk from manufacturers and sell them to retailers in smaller quantities. As a result, they have lower distribution costs because they can spread those costs across multiple units. This is known as economies of scale.

Middlemen Such as Wholesalers Have Lower Distribution Costs Because They