When middlemen lack competition it is possible that they may command significant ____________,or excess profits derived by exploiting their privileged positions.

Question

Quizplus · Accepted Answer

Marketing rents refer to the excess profits that middlemen can earn by exploiting their privileged positions in markets where they face little to no competition. This concept captures the idea that these intermediaries can charge more due to their control or influence over the market, rather than through competitive pricing strategies.

When Middlemen Lack Competition It Is Possible That They May