DiscountHaven Inc

question 10

Multiple Choice

DiscountHaven Inc. is a large chain of hypermarkets. It has cost benefits due to its extensive operation. The company's marketing and sales, logistics, administrative, and other such related costs get divided between a large number of product units stocked in its stores. This makes it difficult for smaller retail stores and supermarkets to compete against DiscountHaven's low prices. Thus, DiscountHaven has a competitive advantage due to its

• A) superior customer service.
• B) time compression economies.
• C) economies of scale.
• D) learning-curve effects.

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Definitions:

World Price

The price at which goods are traded internationally, determined by global supply and demand conditions.

Trade Restrictions

Measures implemented by governments to control or limit the flow of goods and services across borders, including tariffs, quotas, and import bans.

Domestic Supply

The total amount of goods and services that are produced within a country's borders and available for domestic consumption or export.