A negative effect of the presence of a large number of middlemen in the distributive network is
Answer Details
The presence of a large number of middlemen in the distributive network can lead to a higher price of goods, which is a negative effect. Middlemen add their own profit margin to the cost of goods, increasing the final price that consumers pay. This can result in inflated prices that are not reflective of the actual cost of production or distribution. As a result, consumers may end up paying more for goods than they would if there were fewer middlemen involved in the process. This can be especially problematic for consumers in low-income households, who may be disproportionately affected by high prices.