Some agree that wholesalers are unnecessary link in trade cycle.Explain why?
Some people think that wholesalers are unecessary link in a trade cycles becuas of the following reasons.
1. In the absence of the wholesalers producers will be able to sell their products directly to the consumers, cutting the profit margin of the wholesaler. This will benefit the consumers in the terms of reduced prices.
2. By directly selling their products to the consumers, the producers will be in a better position of ascertain the consumer demand and understand their needs.