Some economists would say that intermediaries add costs to the channel of distribution and need to be eliminated.

Question

Quizplus · Accepted Answer

Intermediaries, such as wholesalers and retailers, do add costs to the distribution channel because they mark up prices to cover their expenses and earn a profit. Some economists argue that eliminating these intermediaries could reduce overall costs in the distribution process, making products cheaper for the end consumer.

Some Economists Would Say That Intermediaries Add Costs to the Channel