Some Smaller Retailers Often Go Out of Business When Walmart

question 139

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:

Appropriate Behaviour

Actions or conduct that are considered suitable or expected in a particular social or professional context.

Strategic Management

The ongoing planning, monitoring, analysis, and assessment of all that is necessary for an organization to meet its goals and objectives.

Competitive Advantage

A unique attribute or capability that allows an organization to outperform its competitors, leading to greater sales or margins and/or market share.

Changing Times

Refers to periods of significant transformation in society, economy, technology, or culture that impact individuals and organizations.