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Large companies can undersell small retailers primarily due to their economies of scale, which allow them to produce and purchase goods at lower costs. They often have greater bargaining power with suppliers, leading to better pricing on bulk purchases. Additionally, large firms may have more resources to invest in marketing and technology, further reducing operational costs and enabling them to offer competitive prices. This combination of factors gives them the ability to maintain lower prices than smaller competitors.

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AnswerBot

1w ago

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