Why do middlemen make the difference

time:2023-02-03 13:47:02source:monlittlebaby.com author:Emergency treatment
Why do middlemen make the difference

My grandmother lives in a small remote village. There is a small shop in the village. The unit price of goods there is 50 to 2 yuan more expensive than the supermarket in the town. Walk into town to shop for daily necessities. Once I caught a cold and had a high fever, and my grandmother was very anxious, so she bought me a fever-reducing medicine from the small shop, which was two yuan more expensive than the town. That was the first time I saw my grandmother visit the small shop. My very precious childhood memories. However, why is the antipyretic medicine in the village two yuan more expensive? I really didn't understand it at the time. Now I know that if my grandmother is going to buy medicine in town, it is obviously too late to walk. She needs to let Xiao Li from the neighbor drive her there on a motorcycle. The round-trip fuel cost is two yuan and five. Five eggs were given to the neighbors as a thank you, so you see, grandma buying medicine directly from the small store is a very cost-effective and smart choice. This small store has made the price of my grandmother's cold medicine less expensive, and I have less risk of persistent high fever. Why are there always middlemen who make the difference? Through my experience with my grandmother, everyone will know that although the middleman makes a difference in price, its existence reduces the total price for people to obtain a resource or service. Finally, I leave a question for you. When grandma decided to buy medicine from a small store, besides the price of the medicine, did she have any other cost considerations in her mind. I will discuss this with you later. Tomorrow, we're going to learn a familiar economic concept: sunk costs.
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