Wal-Mart Decides to Sell the Same Jeans in All Its

question 63

Multiple Choice

Wal-Mart decides to sell the same jeans in all its retail locations throughout the world.Which of the following is a benefit of this decision to standardize this product line?

• A)Lower costs of manufacturing due to economies of scale
• B)Decreased product costs due to varying local inputs
• C)Greater sales revenues attained by responding to local cultural preferences
• D)All of the above

Distinguish between fixed and variable costs and understand their behavior as output changes.

Understand the concepts of marginal cost and how it relates to production decisions.

Analyze costs to make business decisions regarding output levels and cost minimization.

Understand the impact of scale of production on cost structures and the concept of diminishing returns.

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Definitions:

Economic Growth Rates

The rate at which a nation's Gross Domestic product (GDP) grows or declines.

Economic Growth Rates

Measures the rate of growth in a country's economy over a specific period, often expressed as a percentage increase in real GDP.

Future Innovations

Anticipated advancements and new technologies that are expected to occur in the future.

Productivity

The measure of the efficiency of production, often quantified as the ratio of outputs to inputs in the production process.