Question

One of the reasons that big box retailers like Home Depot are able to achieve economies of scale is that they are able to take advantage of market size and spread investment losses over many locations. they are able to take advantage of physical properties and maximize their scale efficiencies by stocking more merchandise and handling inventory more efficiently. they have been able to protect themselves from the threat of buyer power by increasing input prices. they have both broad and narrow economies of scope.

Answer 1

Big box retailers like Home Depot achieve economies of scale by taking advantage of market size, spreading investment losses, stocking more merchandise efficiently, and increasing input prices. They also benefit from broad economies of scope.

Step-by-step explanation:

One of the reasons that big box retailers like Home Depot are able to achieve economies of scale is by taking advantage of their market size and spreading investment losses over many locations. This allows them to maximize their scale efficiencies by stocking more merchandise and handling inventory more efficiently. Another reason is that they increase input prices to protect themselves from the threat of buyer power.

Broad economies of scope can also contribute to the success of big box retailers like Home Depot. This means that they are able to offer a wide range of products and services, which attracts a larger customer base and creates more opportunities for revenue.

The complete question is:One of the reasons that big box retailers like Home Depot are able to achieve economies of scale is that they are able to take advantage of market size and spread investment losses over many locations. they are able to take advantage of physical properties and maximize their scale efficiencies by stocking more merchandise and handling inventory more efficiently. they have been able to protect themselves from the threat of buyer power by increasing input prices. they have both broad and narrow economies of scope.