In Retailing,the Cost Advantages of Large Retail Chains (Such as Wal-Mart

question 46

Multiple Choice

In retailing,the cost advantages of large retail chains (such as Wal-Mart in the US,Tesco in Britain,Metro in Germany,and Carrefour in France) is primarily the result of:

• A)Scale economies in operating large individual retail units
• B)Lower costs of bought-in products as a result of superior bargaining power
• C)Higher capacity utilization in retailing and distribution
• D)Using superior bargaining power to pay lower wage rates.

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Definitions:

Derived Demand

Demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.

Wood Pallets

Wood pallets are flat transport structures made of wood that support goods in a stable fashion while being lifted by a forklift, pallet jack, front loader, or other jacking device.

Raw and Semifinished

Materials or products that have undergone partial processing but are not yet complete products ready for sale to the end consumer.