Asmall electronics company has begun production of a small line of high-quality, professional studio-model components targeted at audiophiles who shop at thousands of specialty stores across the united states. how should the small electronics company best distribute its new products?

This will best distributed through an agent. The most indirect network is engaged when there are many small producers and many small shops. An agent is used to help organize a large supply of the product. The new products need an up-scale outlet, but the electronics company does not have the sales force to call on thousands of field stores, and there is no sign that the new products warrant creating one.

answer; is usually (less than) the socially optimal level of consumption;