Lilly wanted to open a home improvement category specialist store,but did not because of the size of the local Kent and Home Depot stores.The condition of the retail market that discouraged her was the _____________ of the competitors.

Question

Quizplus · Accepted Answer

Scale economy refers to the cost advantage that larger companies have over smaller ones due to their ability to spread fixed costs over a larger volume of output. In this case, the size of the local Kent and Home Depot stores would give them a scale economy advantage, making it difficult for Lilly's smaller store to compete on price and profitability.

Lilly Wanted to Open a Home Improvement Category Specialist Store,but