Wal-Mart makes bulk purchases from its vendors and hence it is able to get better deals than its competitors. This allows Wal-Mart to offer greater discounts to its customers. In this case, Wal-Mart benefits from _____.

Question

Quizplus · Accepted Answer

Economies of scale are unit cost reductions associated with a large scale of output. Here, Wal-Mart is benefiting from the economies of scale.

Wal-Mart Makes Bulk Purchases from Its Vendors and Hence It