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Posted: February 25th, 2023
Which of the following is true of distribution costs
Which of the following is true of distribution costs?Fewer middlemen lead to higher overall cumulative taxes on goods and higher distribution costs.In countries where value-added tax is noncumulative, tax is paid only on the difference between the middlemanâs cost and the selling price.Shorter channels of distribution can help reduce the prices of final goods.In a country where taxes on goods are cumulative, firms have an incentive to maintain longer channels of distribution.Designing a channel that has fewer middlemen may increase distribution costs.
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