Walmart Is Able to Order Huge Quantities of Shovels and Rakes

question 251

Multiple Choice

Walmart is able to order huge quantities of shovels and rakes at very low prices from many different factories in China as it opens more stores. This BEST represents

• A) short-run economies of scale.
• B) long-run diseconomies of scale.
• C) economies of scope.
• D) long-run economies of scale.

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Definitions:

Private Label Brands

Products sold by retailers under their own branding and packaging, but manufactured by third parties.

Manufacturer Brands

Brands that are owned and managed by the manufacturer rather than retailers or intermediaries, usually marketed under the company's name.

Walgreens

An American company that operates as the second-largest pharmacy store chain in the United States, offering health products, health information, and photo services.

Nonprofit Brand

A brand associated with organizations that operate without the primary goal of making profits, focusing on advancing a cause or mission.