The distribution channel that contributes most to the cost of production is?

Assessment: JAMB UTME - Economics - 2001 Subject: Economics

Question 1 Report

The distribution channel that contributes most to the cost of production is?
Answer Details
The distribution channel that contributes most to the cost of production is the one that involves more intermediaries in the chain. The more intermediaries involved, the higher the cost of production due to additional expenses such as transportation, handling, storage, and profits for each intermediary. Therefore, the distribution channel that involves the producer, retailer, wholesaler, and consumer (option D) would contribute the most to the cost of production.
Read lesson note on Business Organizations (WAEC)
Read lesson note on Distributive Trade (WAEC)
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