which of the following is a threat to the existence of middlemen
Answer Details
The existence of middlemen, who act as intermediaries between producers and consumers, is threatened by the establishment of consumers and producers cooperative societies.
Cooperative societies allow consumers and producers to bypass middlemen, as they work together to market and distribute goods directly between themselves. By doing so, they eliminate the need for middlemen, who may take a portion of the profit for themselves.
Consumers cooperative societies are formed by groups of consumers who band together to purchase goods in bulk, which allows them to negotiate better prices directly with producers. Producers cooperative societies are formed by groups of producers who come together to pool their resources and collectively market their products, which can lead to greater bargaining power and access to larger markets.
Sales agents and large scale producers may also pose a threat to the existence of middlemen, as they have the resources and marketing power to bypass intermediaries and deal directly with producers and consumers. However, cooperative societies are a particularly potent threat to middlemen as they represent a collective effort by producers and consumers to work together, rather than being reliant on individual sales agents or large scale producers.