one of the argument against he presence of middlemen in the distribution chain is that they

Assessment: WAEC SSCE - Economics - 1989 (Objective) Subject: Economics

Question 1 Report

one of the argument against he presence of middlemen in the distribution chain is that they
Answer Details
One of the arguments against the presence of middlemen in the distribution chain is that they cause an increase in the price of commodities. Middlemen are intermediaries who buy goods from producers and sell them to consumers. They add their own profit margin to the price of the goods, which increases the final price paid by consumers. This can be particularly problematic in situations where there are many middlemen involved in the distribution chain, as each one will add their own margin, leading to a significant increase in the price of the commodity. Some argue that the elimination of middlemen could result in lower prices for consumers, as there would be fewer people involved in the distribution chain and therefore fewer markups along the way.

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