Final answer:
The correct term for a business that makes a profit by buying products from manufacturers and reselling them to customers is 'Marketing Intermediary.' This type of business serves as a critical link within the distribution chain between producers and consumers in various markets, including oligopolistic ones.
Step-by-step explanation:
When a business makes a profit by buying products from manufacturers and reselling them to customers, the correct term for this activity is 'Marketing Intermediary,' which is a business that serves as a bridge between the producer and the consumer, facilitating transactions and the distribution of products. The other options provided, such as Manufacturing Monopoly, Retailing Representative, and Production Protagonist, do not accurately describe this process. Marketing intermediaries are an essential component of the distribution channel and play a critical role in the product market, influencing retail decisions and consumer access to goods.
Oligopolies exist in various industries, and the interplay between firms in such markets could lead to competitive pricing similar to perfect competition or to collusion, which can result in higher profits similar to a monopoly. The factors that lead to the formation of oligopolies include barriers to entry, economies of scale, and the strategic behavior of firms within an industry. In a competitive market, profits signal businesses to expand production, either by building new facilities or enhancing existing ones, which can lead to the entry of new firms that are attracted by the potential for profits.