BuyMart Inc. is a large chain of hypermarkets. It has cost benefits due to its extensive operation. The company's marketing and sales, logistics, administrative, and other such related costs get divided between a large number of product units stocked in its stores. This makes it difficult for smaller retail stores and supermarkets to compete against BuyMart's low prices. Thus, BuyMart has a competitive advantage due to its:

C. economies of scale.

Question

Business

Elvis Farmer

9 June, 19:53

BuyMart Inc. is a large chain of hypermarkets. It has cost benefits due to its extensive operation. The company's marketing and sales, logistics, administrative, and other such related costs get divided between a large number of product units stocked in its stores. This makes it difficult for smaller retail stores and supermarkets to compete against BuyMart's low prices. Thus, BuyMart has a competitive advantage due to its:

C. economies of scale.

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Answers (1)

Know the Answer?

Noelle Fitzgerald · Answer 1

Economies of Scale

Explanation:

Economies of Scale -

It refers to the advantage received by a particular business or company during the stage of very efficient production, is referred to as the economies of scale.

The method is established by increasing the production of the goods and services and reducing the cost of the product, where more consumers would get attracted to buy the product, and thereby increases the profit margin of the company.

Hence, from the given scenario of the question,

The correct answer is economies of scale.