By buying in large quantities and delivering to customers in smaller lots, a wholesaler may perform physical distribution activities more efficiently than a producer.

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This statement is true. Wholesalers can benefit from economies of scale by purchasing products in large quantities directly from producers or manufacturers. As a result, wholesalers can usually offer lower prices to customers than those offered by producers, who may not have the same buying power. Additionally, wholesalers often have specialized facilities and equipment for storing, packaging, and delivering products, which can help them to distribute goods more efficiently and effectively than producers who may not have the same resources.

By Buying in Large Quantities and Delivering to Customers in Smaller