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.

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Definitions:

Contributory Negligence

A legal principle where if a party can be shown to have contributed to their own injury or loss, they may be barred from recovering damages.

Smoke Alarms

Devices designed to detect smoke and emit an alarm, providing early warning of fire.

Negligence Action

A legal claim brought against someone who fails to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.

Building Owner

An individual or entity that holds title to a building or property.