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It is important to remember that the distribution question does not To the consumer, the price is representative of a cost on his or
primarily deal with: her part.
a. how the goods and services in the economy are marketed by To the producer, the price represents both cost and profit. When
various middlemen, but rather it is based on the purchasing the producer says that he or she will produce only if the price is right,
power of consumers (the consumer’s ability to buy the produced technically, he or she is saying that his or her profit in performing such
goods and services); or an activity should also be right.
b. if there is a considerable demand for the products produced. In
allowing products to reach their ultimate consumers, however, Ideally, it is only the government that does not charge any profit
marketing intermediaries either use direct or indirect methods. for its production of goods and services, since these are for public
consumption.
DISTRIBUTION STRATEGIES
Indirect Distribution -
This is one kind of distribution employed by traditional methods which
involves transferring ownership of goods from the producer to a
wholesaler, then a retailer, before reaching the final consumer.
Transactions in this market occur when both the buyers and sellers
agree on the price of the given good and service. Although there is
government intervention, it usually plays more of a regulatory rather
than an intervening role. A market economic system gives people the
freedom of enterprise or the freedom to pursue business without the
REFERENCE:
Azarcon, Marzo, Navarro, Ressureccion, Paca, Degay, Sison and Rojo.
Principles of Economics with Taxation and Agrarian Reform, 2nd Edition