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tarasen57 tarasen57
wrote...
Posts: 536
5 years ago
When Walmart decides to build a new retail store in a town, it will decide to build a large store rather than a small store if the large store is expected to earn a greater economic profit. What other motive would Walmart have for choosing to build a large store?

• A larger store will help Walmart maintain its position as the leading retail company in the world more than a smaller store would.

• A larger store will give Walmart greater political influence in the community.

• A larger store may deter entry into the town by a rival firm.

• Because of economies of scale, the average total cost of production is less for a larger store than a smaller store.
Textbook 
Microeconomics

Microeconomics


Edition: 7th
Authors:
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Answer verified by a subject expert
blazeypoohblazeypooh
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Posts: 404
5 years ago
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tarasen57 Author
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5 years ago
Helped a lot
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Yesterday
Good timing, thanks!
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2 hours ago
You make an excellent tutor!
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