There is a
seamless nature to production. Everyone along the way contributes, everyone
along the way is a ‘middleman.’ The process of production includes every step,
all the way up until the good is consumed, including making the consumer aware
of the availability of the product and the desirability of the product.
Everywhere along the production line someone playing this particular role of a
middleman will perform this service. All of these ‘selling costs’ are all a
part of the process.
Since
consumers are often passive entrepreneurs it is the producer who must complete
the production process by taking active steps to get the potential customers to
know about these purchase opportunities. Producers reduce the uncertainty of
the total supply on the market by product differentiation but this then
suggests that the producer needs to educate the consumers about the product.
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