Question

Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys its goods in large quantities and, therefore, at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates that

A consumers do not react to changing prices
B there are diseconomies of scale in retail sales
C there are economies of scale in retail sales
D there are diminishing returns to producing and selling retail goods
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