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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The process of justifying behaviors or decisions with plausible explanations, often to hide true motives or failures.

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A structured approach to identifying, analyzing, and resolving issues.

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