Which of the Following Most Accurately States the Function of Middlemen

question 86

Multiple Choice

Which of the following most accurately states the function of middlemen?

• A) Middlemen add to the expense of buyers and sellers without providing any benefit.
• B) Our economy would work just as well without middlemen since they do not expand the availability of physical goods.
• C) Middlemen reduce the number of transactions since they increase the buyer's price and reduce the seller's net revenue.
• D) Middlemen create value by arranging trades and providing information to buyers and sellers.

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Definitions:

Public Utilities

Organizations that provide essential services to the public such as water, electricity, natural gas, and telecommunications.

Target Return-on-sales Pricing

A pricing strategy where the price is set with the aim of achieving a specific return on sales percentage.

Profit Percentage

A financial metric that shows what percentage of sales has turned into profits, indicating the efficiency of a company's operations.

Sales Volume

The total quantity of goods or services sold by a company within a specific period.