When Walmart Decides to Build a New Retail Store in a Town

question 71

Multiple Choice

When Walmart decides to build a new retail store in a town, it will decide to build a large store rather than a small store if the large store is expected to earn a greater economic profit.What other motive would Walmart have for choosing to build a large store?

• A)A larger store will help Walmart maintain its position as the leading retail company in the world more than a smaller store would.
• B)A larger store will give Walmart greater political influence in the community.
• C)A larger store may deter entry into the town by a rival firm.
• D)Because of economies of scale, the average total cost of production is less for a larger store than a smaller store.

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Definitions:

Good Luck

A favorable or beneficial circumstance that happens by chance, often considered an element of success not attributable to one's actions.

Halo Effect

A cognitive bias where the perception of one positive quality in a person leads to the unjustified extension of positive evaluation to other qualities.

Favorable Impression

The positive perception or judgment of someone or something based on initial interactions or information.

Interview Bias

A type of response bias that occurs in research when the interviewer’s beliefs, views, or characteristics unduly influence the subject's responses, leading to skewed results.