Manufacturers use wholesalers and retailers because:

• A. they help distribute goods more efficiently to consumers
• B. they increase the production costs for manufacturers
• C. they eliminate the need for advertising
• D. they reduce the variety of products available to consumers

Answer: (A)

Verified step by step guidance

1. Understand the role of wholesalers and retailers in the supply chain: they act as intermediaries between manufacturers and consumers.
2. Recognize that wholesalers and retailers help break down large quantities of goods into smaller, more manageable amounts suitable for consumers, improving distribution efficiency.
3. Consider how these intermediaries reduce the logistical burden on manufacturers by handling storage, transportation, and sales to end consumers.
4. Evaluate the impact on production costs: intermediaries typically do not increase production costs but may add distribution costs, which are often offset by efficiency gains.
5. Conclude that wholesalers and retailers primarily exist to help distribute goods more efficiently to consumers, rather than eliminating advertising or reducing product variety.