Walmart tends to have the best retailing system, the best distribution system, and the best marketing system of the modern retailers. It also dominates the marketplace for retail sales to a greater extent than any other retailer. What is the source of Walmart's ability to capture value in the marketplace?
What will be an ideal response?
Walmart initially had a first-mover advantage in many Southern and rural communities as the first and often only discount retailer located in these communities. This first-mover advantage created both an entry barrier that deterred other retailers from opening in these small communities and market power for Walmart. Walmart also developed efficient team capabilities in retailing, buying, and distribution. The value of the Walmart team is greater than the cost of individual parts.
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The fact that you may not know who your congressional representative is represents
A) rational ignorance on your part. B) the rival nature of information. C) inefficient oversupply of public servants. D) the use of the median voter theorem.
If the trade surplus has fallen, which of the following is a possible explanation?
a. The real exchange rate rose. b. Foreign income fell. c. Domestic income fell. d. The foreign price level rose.
An example of a common resource is
A. college education. B. a public parking lot. C. airline travel. D. a private beach.
With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers, then positive analysis would conclude:
A. the policy was effective, since surplus gained by consumers through lower prices is greater than the surplus they lost through deadweight loss. B. the policy was effective, since surplus lost by producers through lower prices is less than the surplus gained by consumers through lower prices. C. the policy was ineffective, since the amount of deadweight loss is greater than the surplus gained by consumers from lower prices. D. the policy was ineffective, since surplus gained by consumers through lower prices is less than the surplus they lost through deadweight loss.