Which of the following most accurately states the function of middlemen?
A) Middlemen reduce transaction costs.
B) Middlemen add to the expense of buyers and sellers without providing any benefit.
C) Our economy would work just as well without middlemen since they do not expand the availability of physical goods.
D) Middlemen reduce the number of transactions since they increase the buyer's price and reduce the seller's net receipts.

Question

Quizplus · Accepted Answer

Middlemen reduce transaction costs by facilitating exchanges between buyers and sellers, providing value through services like information dissemination, logistics, and reducing the time and effort needed to complete transactions.

Which of the Following Most Accurately States the Function of Middlemen