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WAEC Commerce 1991 (August) Question 48

Question 48

Wholesale Trade

The manufacturer would by-pass the wholesaler and the retailer in the distribution of his products if the

  1. A.demand is widespread
  2. B.wholesaler and retailer lack office accommodation
  3. C.volume of production is high
  4. D.the product make-up and use are highly technical
  5. E.manufacturer has no warehouse
Show the answer and explanation

Answer: D (the product make-up and use are highly technical)

Explanation

Technical goods need expert explanation and after-sales service, so the maker sells them directly.