Which best explains why wholesalers can offer lowers prices to large customers?

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1252339

2026-03-16 10:40

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Wholesalers can offer lower prices to large customers primarily due to economies of scale, which allow them to reduce per-unit costs as they purchase and sell larger quantities. Additionally, wholesalers often have lower operating costs and can negotiate better deals with manufacturers, passing those savings on to bulk purchasers. This pricing strategy incentivizes larger orders, benefiting both the wholesaler and the customer.

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