Some Smaller Retailers Often Go Out of Business When Walmart

question 28

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 smaller stores.
• D) smaller stores increase prices to compete.

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