Question

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 are spread over 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____________

Answer 1

Answer:

economies of scale.

Explanation:

Economies of scale -

It refers to the edge over the cost of the company , which is due to the very efficient production rate , is refer to as economies of scale .

Economies of scale can be both external and internal .

This process can be done by increasing the production of the goods and services , and thereby reducing the overall cost of the product , and more number of consumers will try to grab the product , and hence ,

The profit of the company will increasers .

Hence , from the given scenario of the question ,

The correct answer is economies of scale .