Wal-Mart Was One of the Most Successful Firms of the 1970s

question 34

Multiple Choice

Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansion strategy: they rushed to open the first discount store in small towns that could only support one discount store. In the language of game theory:

• A) Wal-Mart was a dominant firm.
• B) Wal-Mart made empty threats.
• C) Wal-Mart employed a maximin strategy.
• D) Wal-Mart employed a preemptive strategy.

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Definitions:

Operating Expenses

Costs related to the normal day-to-day operations of a business, excluding the cost of goods sold.

Cost Of Goods Sold

The total cost directly associated with producing or acquiring the goods sold by a company during a specific period.

Periodic Inventory Systems

Periodic Inventory Systems are accounting methods that calculate the inventory at the end of an accounting period to determine cost of goods sold and ending inventory.