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Large companies can negotiate better prices with wholesalers.

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What explains why a large company can undersell small retailers?

Large companies can negotiate better prices with retailers


What is Best explains why a large company can undersell small retailers?

A large company can undersell small retailers primarily due to economies of scale, which allow them to produce goods at a lower cost per unit as their production volume increases. Additionally, larger companies often have greater negotiating power with suppliers, enabling them to secure bulk discounts and lower prices. This financial leverage, combined with more extensive marketing budgets and distribution networks, allows them to offer lower prices that smaller retailers cannot match.


What best explains why a large company can undersell small retailors?

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.


What is a large company's ability to take advantage of economies of scale?

The company can offer goods more cheaply than smaller retailers


Which of the following results from a large company's ability to take advantage of economies of a scale?

The company can offer goods more cheaply than smaller retailers.


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