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Description of Economies of Scale

Discuss whether economies of scale have any relevance to such companies as Wal-Mart.

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Economies of scale have great relevance to companies like Wal-Mart. Economies of scale are realized in purchasing. Wal-Mart can better deals from suppliers. The suppliers in turn realize economies in production. Economies of scale are realized during transportation and logistics. Wal-Mart has realized economies of scale even in tracking consignments from the producers to the customers. Wal-Mart has tremendous bargaining power with its suppliers and it exercises such power ...

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The answer contains 242 words about the relevance of economies of scale to Wal-Mart with references.