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Wal-Mart is the largest corporation in the world. During 2012, it made about $425 billion in sales, representing 1.9 percent of GDP in the U.S. Even during recession years, its sales have grown.
Explain what: (1) economics of scale; (2) economies of scope; and, (3) monopsony power have to do with Wal-Mart's rapid expansion, large size, and high level of profitability.
Can Wal-Mart sustain such growth rates and, if it does, what is the logical end to this process?
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