Wholesalers may perform which of the following actions?

Wholesalers play a critical role in the distribution chain, acting as intermediaries between manufacturers and retailers or other businesses. They primarily focus on selling bulk quantities of goods rather than dealing directly with retail customers. By selling to dealers and other wholesalers, they facilitate the movement of products through the supply chain, ensuring that retailers have the inventory needed to meet consumer demand.

This role allows wholesalers to leverage economies of scale, enabling them to purchase large quantities from manufacturers at lower prices and pass some of those savings onto their customers, which might include retailers or other wholesalers. This transactional relationship is essential for the efficiency of the distribution system, as it streamlines the process of getting products from creators to sellers.

In contrast, the other options suggest limitations that do not align with the standard functions of wholesalers. Wholesalers do not restrict their sales exclusively to retail customers, which would contradict their operational model. Limiting sales to manufacturer returns or offering discounts only to end consumers also misrepresents the broader market activities in which wholesalers typically engage. The correct understanding of a wholesaler’s role emphasizes their interactions with a wide range of businesses, making the option that highlights selling to dealers and other wholesalers the most accurate representation of their function in the market.