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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