Econ market power

Econ market power - manufacture goods for Wal-mart. With...

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Joe Wallace Econ102 11/17/07 Professor Schiller Market power Wal-mart is known for their extraordinary low prices. Many wonder how it is that Wal-mart can afford to sell its goods at such inexpensive prices and still manage to rake in the profits. Wal-mart hasn’t made themselves the largest corporation by revenue by chance; it to put pressure on its suppliers in order to ensure the cheapest price possible. They make suppliers bid down the price at which they are willing to
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Unformatted text preview: manufacture goods for Wal-mart. With this quasi-price setting, Wal-mart is able to take hold control of the market by making sure they can offer identical goods at the lowest price. Other businesses are not able to use the same tactics as Wal-mart due to the fact that they do not have as much leverage given their smaller size in comparison to Wal-mart. They are known around the world for having tremendously low prices for anything one could be looking for....
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