Question

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or

Home Depot?
a. Because the large size creates economies of scale and they can charge lower prices
b. Because the selection in the stores is too large
c. Because large retailers attract crime to neighborhoods in which they are based
d. Because community leaders do not like the top management
e. Because large retailers almost never hire local workers as employees

Answer 1

Large chain retailers like Wal-Mart or Home Depot create economies of scale, which allows them to charge lower prices, making it difficult for small businesses to compete.

Step-by-step explanation:

One primary reason why some small businesses resist the opening of large chain retailers like Wal-Mart or Home Depot is because the large size creates economies of scale. This allows large retailers to charge lower prices due to their ability to buy inventory in bulk, negotiate better deals with suppliers, and spread their fixed costs over a greater number of products sold. These lower prices can make it difficult for small businesses to compete and can result in loss of customers and revenues for them.