Membership warehouse clubs have significant economies due to low-cost locations, a combined store-warehouse facility, and high turnover due to low selections.

Question

Quizplus · Accepted Answer

Membership warehouse clubs achieve economies of scale by utilizing low-cost locations, operating combined store-warehouse facilities to reduce overhead, and maintaining high turnover rates through a limited selection of high-demand items, which contributes to their cost efficiency.

Membership Warehouse Clubs Have Significant Economies Due to Low-Cost Locations