A National Grocery Chain Sets Up a Store in a Small

question 38

Multiple Choice

A national grocery chain sets up a store in a small town. It sources most of its produce from the local farmers. Since it sources the produce in bulk, it demands discounts from the suppliers. The store passes some of these savings to the customers in the form of low prices for the products. The price is lower than what is offered by the local grocery stores. The large quantities of products sold compensates for the lower price. This is an example of:

• A) economies of distribution.
• B) economies of cost.
• C) economies of demand.
• D) economies of supply.
• E) economies of scale.

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Definitions:

Legal Defensibility

The capability of a policy, action, or practice to be defended in legal proceedings, typically by demonstrating that it is justified, fair, and compliant with laws.

Trait-Oriented Performance Appraisals

An evaluation method focusing on the individual characteristics of an employee, such as attitudes, personality traits, and behaviors, rather than objective output.

Behavior-Oriented

An approach or methodology that focuses on analyzing and modifying observable and measurable behaviors.

Legal Viewpoint

Legal viewpoint refers to the perspective or approach adopted based on laws and legal considerations, typically concerning rights, obligations, and compliance.