Some Smaller Retailers Often Go Out of Business When Walmart

question 33

Multiple Choice

Some smaller retailers often go out of business when Walmart opens a new store.The MOST likely reason for this development is that:

• A)Walmart practices unfair pricing methods that reduce consumer surplus over time.
• B)consumers in those areas receive no consumer surplus from Walmart.
• C)consumers in those areas receive a larger consumer surplus from shopping at Walmart than from the smaller stores.
• D)smaller stores increase prices to compete.