Question

Why are goods sold in permanent shops costlier than those sold in the weekly markets or by roadside hawkers?

Answer 1

The goods sold in permanent shops are costlier than those sold in the weekly markets or by roadside hawkers because the shops in permanent buildings incur the following extra expenditure:

1. The permanent shop owners have to pay rent, electricity, and fees to the Government.
2. They also have to pay wages to their workers while in weekly markets, most of the shop owners are helped by their family members and they need not hire workers.
3. There are less competition and bargaining among the permanent shops.