Walmart Initially Used a Focused Cost Leadership Strategy to Compete

question 16

Multiple Choice

Walmart initially used a focused cost leadership strategy to compete only in small communities by using sophisticated logistics systems and efficient purchasing practices to gain a competitive advantage.The response of local competitors was __________ because they __________.

• A) rapid; were nimble and flexible
• B) slow; lacked the ability to line up resources
• C) slow; did not perceive gains associated with responding to Walmart's attack
• D) rapid; had the resources and flexibility to compete against Walmart

Assess the welfare implications of monopolistic competition, including inefficiencies and externalities.

Explain the role and impact of advertising in product differentiation and market competition.

Understand the relationship between market structure, product variety, and consumer welfare.

Discuss the implications of free entry and exit in monopolistically competitive markets on economic profits.

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Definitions:

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on the interests of stakeholders, including shareholders, management, customers, suppliers, financiers, government, and the community.

Unethical

Actions or behaviors that violate moral or professional principles and standards.

Corporate Social Responsibility

The practice of businesses engaging in initiatives that benefit society, beyond their financial interests and legal requirements.