Illustrate how the presence of middlemen affects the operation of competitive markets

Competition markets are characterized by intense competition and price wars. Midwayers in competitive markets acts as a link between suppliers/manufacturers and consumers. They make goods available to the customer, but they earn a commission that is linked to the level of sales. This commission always affects the price of a commodity and thus places its influence on a competitive market. The commission is added to the price that is then borne or charged to the customer and thus affects the price level. As the success of the firm in such a market depends on the price level, the middlemen thus have an impact on the functioning of the competitive market by triggering price wars.