Asked by Misael Aneuris on May 11, 2024
Verified
What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?
A) Because the large size creates economies of scale and they can charge lower prices
B) Because the selection in the stores is too large
C) Because large retailers attract crime to neighborhoods in which they are based
D) Because community leaders do not like the top management
E) Because large retailers almost never hire local workers as employees
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, resulting in reduced costs per unit of output.
Chain Retailers
Retail businesses that operate multiple outlets under the same brand or ownership, offering consistent products and services across locations.
- Determine anticompetitive tactics and their impact on legislation meant to prevent monopolies.
Verified Answer
DH
Dellanira HerasmeMay 13, 2024
Final Answer :
A
Explanation :
Small businesses may resist the opening of large chain retailers like Walmart or Home Depot because these retailers can charge lower prices due to economies of scale. This can make it difficult for small businesses to compete and survive.
Learning Objectives
- Determine anticompetitive tactics and their impact on legislation meant to prevent monopolies.