Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 2 - The Market System and the Circular Flow - Discussion Questions - Page 49: 7

Answer

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Work Step by Step

Producers often sell to larger stores because they know that this will give customers more access to their product, thus allowing them to sell their product more easily. As a result, producers are happy to give stores a cut of their profit as it makes selling their product much easier, hence allowing them to sell more of their product.
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