When Wal-Mart decides to build a new retail store in a town, it ...

[daltonest1984]

When Wal-Mart decides to build a new retail store in a town, it will decide to build a large store rather than a small store if the large store is expected to earn a greater economic profit.
 
  What other motive would Wal-Mart have for choosing to build a large store?
  A) A larger store will help Wal-Mart maintain its position as the leading retail company in the world more than a smaller store would.
  B) Because of economies of scale, the average total cost of production is less for a larger store than a smaller store.
  C) A larger store will give Wal-Mart greater political influence in the community.
  D) A larger store may deter entry into the town by a rival firm.

Question 2

The market supply curve for labor is
 
  A) perfectly inelastic if leisure is an inferior good.
  B) determined by adding up the quantity of labor supplied by each worker at each wage, holding constant all other variables that affect the willingness of workers to supply labor.
  C) determined by adding up the wages each worker is willing to work for at a given quantity supplied, holding constant all other variables that affect the willingness of workers to supply labor.
  D) derived from the market supply curve for the output produced with labor.

[tkempin]

Answer to Question 1

D

Answer to Question 2

B