Economies of scale allow for lower costs, not lower prices. Lower prices are a choice that companies make, and it’s a choice they don’t have to make if they don’t have competitors.
Walmart has been doing it for decades to achieve its low prices. The problem isn’t that it won’t work, it’s just still a shitty thing to squeeze every cent from your suppliers.
Wal*Mart does definitely squeeze their suppliers, and it does have relatively low prices, but it’s hardly a charity. It squeezes suppliers, not so that it can supply customers with low prices but so that it can provide profits to investors.
“You should let us reduce competition in the grocery space, because with less competition prices will be lower.”
That’s a bold take.
Economies of scale do allow for lower prices. Problem being, monopolies do not.
Economies of scale allow for lower costs, not lower prices. Lower prices are a choice that companies make, and it’s a choice they don’t have to make if they don’t have competitors.
$omething tell$ me it will probably $till work though.
Walmart has been doing it for decades to achieve its low prices. The problem isn’t that it won’t work, it’s just still a shitty thing to squeeze every cent from your suppliers.
Wal*Mart does definitely squeeze their suppliers, and it does have relatively low prices, but it’s hardly a charity. It squeezes suppliers, not so that it can supply customers with low prices but so that it can provide profits to investors.