Economies of Scale Paper

Discuss whether economies of scale have any relevance to such companies as Wal-Mart.
Please use the below reference for your primary research.
Managerial Economics 8th Edition. John Wiley & Sons, Inc.
William F. Samuelson & Stephen G. Marks. (2015).

SAMPLE SOLUTION

Economies of scale refer to the competitive advantage that big organizations have over small and upcoming business entities. There are two classifications of economies of scale: internal and external. As the name suggests, internal economies are internal to the firm and controllable by the company’s leadership (Hill, Jones & Schilling, 2015). External economies of scale, on the other hand, are supported by external factors such as government, geographical location, and industry. Undoubtedly, economies of scale have a lot of relevance to such large companies as Wal-Mart. First and foremost, large firms enjoy technical economies of scale due to efficiencies in their operations. Such companies take advantage of advanced methods of operation (Basker, 2016). A good example is complex data mining software…