Since the 1980s,Wal-Mart stores have appeared in almost every community in America.Wal-Mart buys its goods in large quantities and,therefore,at cheaper prices.Wal-Mart also locates its stores where land prices are low,usually outside of the community business district.Many customers shop at Wal-Mart because of low prices.Local retailers,like the neighborhood drug store,often go out of business because they lose customers.This story demonstrates that

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The story shows that Wal-Mart is able to achieve lower prices than local retailers by buying goods in large quantities and locating stores where land prices are low. This indicates that Wal-Mart is benefiting from economies of scale in retail sales, as larger retailers are often able to achieve lower costs per unit by spreading fixed expenses over a larger volume of sales.

Since the 1980s,Wal-Mart Stores Have Appeared in Almost Every Community