One of the Keys to Walmart's Success Is Its Ability

question 35

Multiple Choice

One of the keys to Walmart's success is its ability to keep prices low.It is able to do this by its heavy reliance on cheap Chinese imports.Also,its network of distribution centres throughout the United States allows it to keep costs low through increased efficiency.Walmart's competitive advantage is achieved through _________________________.

• A)quality
• B)delivery
• C)flexibility
• D)cost
• E)strategic positioning

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own production instead of selling or renting them to others.

Interest Rate

The price, calculated as a percentage of the amount borrowed, that a lender charges a borrower for the use of their savings for one year.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Explicit Cost

Direct payment made to others in the course of running a business, such as wages, rent, and materials.