Final answer:
Distributors help reduce the costs of moving goods from producers to consumers by optimizing the supply chain and utilizing cost-effective transportation methods, making the statement true.
Step-by-step explanation:
Distributors can play a crucial role in reducing the costs associated with moving goods from producers to consumers. This is because distributors optimize the supply chain by consolidating goods from various producers and organizing efficient transportation methods. When goods are shipped over congested street networks or jammed freeways, the costs can increase significantly due to delays and increased expenses like fuel costs. However, strategic location near uncrowded freeways, or access to rail and water transport, can make transportation more cost-effective.
Take the example of a messenger company in a city. If the company's main cost is gasoline, a decrease in gasoline prices will enable it to deliver packages more cheaply. Lower costs lead to higher profits, and the company might expand its service area due to the reduced expenses, thus increasing its supply. Hence, distributors can indeed reduce the cost of moving goods, making the true statement: a. True.