Determine and discuss whether economies of scale have relevance to such companies as Wal-Mart.© BrainMass Inc. brainmass.com March 21, 2019, 10:07 pm ad1c9bdddf
They certainly do. Economies of scale refers to the cost advantages that big firms have over small firms. In some industries, large firms have lower average costs than small firms, allowing them to sell their products at lower prices and gain a competitive advantage over small firms.
To see how this applies to Wal-Mart, contrast one ten-department Wal-Mart superstore with ten small, independent ...
This solution explains how economies of scale give large firms like Wal-Mart a competitive advantage over small firms.