Which type of market structure uses intermediaries that move products between the manufacturer and the consumer?

• A. Perfect competition
• B. Indirect distribution channels
• C. Direct distribution channels
• D. Monopoly

Answer: (B)

Verified step by step guidance

1. Understand the concept of market structures and distribution channels: Market structures describe the competitive environment in which firms operate, while distribution channels refer to the pathways through which goods move from producers to consumers.
2. Identify the role of intermediaries: Intermediaries are entities such as wholesalers, retailers, or agents that facilitate the movement of products between the manufacturer and the consumer.
3. Recognize that 'Indirect distribution channels' involve intermediaries, as opposed to 'Direct distribution channels' where the manufacturer sells directly to the consumer without intermediaries.
4. Relate the concept to market structures: While perfect competition and monopoly describe competitive environments, the question focuses on the distribution method, which is about how products reach consumers rather than the market structure itself.
5. Conclude that the correct term for the use of intermediaries moving products between manufacturer and consumer is 'Indirect distribution channels'.