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.

---

Definitions:

Monte Carlo Sampling

A statistical technique that uses random sampling and repeated simulations to compute results for complex problems.

Forecast Values

Predicted numerical values based on historical data analysis, used in various industries for planning and decision-making purposes.

Uncertain Inputs

Variables in a model or decision-making process whose values are not known with certainty, often requiring risk analysis or simulation to manage.

Assumptions

Foundational ideas accepted as true without proof, used as the basis for reasoning or argument.