Wal-Mart Makes Bulk Purchases from Its Vendors and Hence It

question 49

Multiple Choice

Wal-Mart makes bulk purchases from its vendors and hence it is able to get better deals than its competitors. This allows Wal-Mart to offer greater discounts to its customers. In this case, Wal-Mart benefits from _____.

• A) first-mover advantage
• B) constant marginal returns
• C) economies of scale
• D) absolute advantage of production

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Definitions:

Social Contagion

The spread of behaviors, attitudes, or emotions through groups or societies, much like the transmission of diseases.

Affect

In psychology, a broad range of emotions and subjective feelings that can influence an individual's behavior and perceptions.

Collective Effervescence

Describes the energetic sense of community and unity experienced by individuals during group gatherings or social events, as defined by Emile Durkheim.

Crowds

Large groups of people gathered together, typically without orderly arrangement.