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Zorluk: OrtaSmall-Scale and Large-Scale Retailing

A large-scale retail enterprise expands its operational capacity and negotiates significant bulk purchase discounts directly from manufacturers, thereby reducing its average cost per unit of inventory sold. Which economic concept best explains the cost advantage achieved by this retail firm?

  1. Internal economies of scaleCevap
  2. B
    External economies of scale
  3. C
    Wholesaler credit creation
  4. D
    External market localization

Cevap

Internal economies of scale best explain the cost advantage achieved by the retail firm.
The correct answer identifies internal economies of scale because the reduction in average costs stems directly from the individual retail firm's own growth, increased buying capacity, and ability to command bulk discounts from manufacturers.

Adım Adım Çözüm

1
Analyze the retail scenario presented in the stem.
The scenario highlights a single large-scale retail enterprise expanding its operations and securing purchasing discounts directly through bulk ordering from manufacturers.
Identifying the source of cost reduction helps distinguish between internal firm-level advantages and external industry-wide factors.
2
Differentiate between internal and external economies of scale in retailing.
Internal economies arise from factors within the control of the specific firm (such as purchasing economies, managerial efficiencies, and financial scale), whereas external economies stem from industrial growth outside the individual firm.
Since the bulk buying power belongs specifically to this individual firm's scale of operation, it represents an internal economy of scale.

Anahtar Kavram

Internal economies of scale in large-scale retailing
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Small-Scale and Large-Scale Retailing

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