Some Smaller Retailers Often Go Out of Business When Walmart

question 139

Multiple Choice

Some smaller retailers often go out of business when Walmart opens a new store. The most likely reason for this development is that:

• A) Walmart practices unfair pricing methods that reduce consumer surplus over time.
• B) consumers in those areas receive no consumer surplus from Walmart.
• C) consumers in those areas receive a larger consumer surplus from shopping at Walmart than from the smaller stores.
• D) smaller stores increase prices to compete.

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Definitions:

Prestige And Way Of Life

Refers to the high social status and lifestyle associated with certain occupations, activities, or societal roles.

Based On Power

Characterized by or dependent upon the distribution and exercise of power, authority, or influence within a group, organization, or society.

Power

Is the capacity to carry out one’s own will despite resistance.

Despite Resistance

Occurring in the face of opposition or efforts to prevent or discourage it.