Consider a Wal-Mart Supercenter and a 7-Eleven Store

question 162

Multiple Choice

Consider a Wal-Mart supercenter and a 7-Eleven store.In the long run,

• A) Wal-Mart or 7-Eleven may have economies of scale depending on how many customers are served.
• B) Wal-Mart will definitely have lower average costs because supercenters serve many more customers.
• C) The 7-Eleven store will definitely have lower average costs because their small stores are cheaper to build.
• D) Wal-Mart's average total cost will decline faster than the 7-Eleven store and experience diseconomies of scale.
• E) The 7-Eleven store's average total cost will be lower than Wal-Mart's and always experience economies of scale.

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Definitions:

Mean Age

The average age of individuals in a population or group, calculated by adding their ages together and dividing by the number of individuals.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, indicating where the middle of the data set lies.

Variability

The degree to which data points in a statistical distribution or dataset differ from each other and from the average.

Standard Deviation

A measure of the dispersion or variation in a set of numbers, indicating how spread out the values are from the mean.