Asked by Caitlin Saalfrank on Jul 07, 2024
Verified
Walmart's purchasing power enables the firm to benefit from economies of scale and receive volume discounts from suppliers.
Purchasing Power
The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.
Economies of Scale
The cost advantage achieved when increasing the scale of production leads to a reduction in the average cost of each unit produced.
- Apprehend the notion of economies of scale and its repercussions on the expenses of producing goods.
- Detail the approaches businesses can adopt to realize economies of scale.
Verified Answer
RD
Regine DorvilusJul 14, 2024
Final Answer :
True
Explanation :
Walmart's large-scale operations allow it to purchase goods in bulk, which often results in cost savings due to volume discounts offered by suppliers. This is an example of economies of scale.
Learning Objectives
- Apprehend the notion of economies of scale and its repercussions on the expenses of producing goods.
- Detail the approaches businesses can adopt to realize economies of scale.
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