One good reason for the elimination of middle men is that they
Cause increase in price
Help in price stability
Grade and blend goods
Are too many
Correct answer is A
The main reason that many will argue that middlemen should be elimination from the channel of distribution is related to the extra costs involved in employing them. Everyone is in business to make profits. The middle men would add a portion of their profits before selling to retailers, the retailers would also increase the price in order to profit off it before selling to the final consumer.
This process makes the price of goods high and expensive.
If there are no barriers to entering a market, it means that
Anyone can become a buyer or a seller
Unwanted goods can always enter the market
The market becomes a dumping ground
The goods are not inspected
Correct answer is A
This means that the firms can enter or quit the industry as they wish.
Perfect competition
Monopoly
Oligopoly
Imperfect competition
Correct answer is A
In order to maximize profits in a perfectly competitive market, firms set marginal revenue equal to marginal cost (MR=MC). MR is the slope of the revenue curve, which is also equal to the demand curve (D) and price.