Question: 16. The following statement appeared in a recent article: 7 cents of every dollar spent at retail stores in America is spent at Walmart. With

16. The following statement appeared in a recent article: 7½

cents of every dollar spent at retail stores in America is spent at Walmart. With such market power, Walmart is able to name the price at which it is willing to buy goods from suppliers. ( LO17-3 )

a. Could this be a correct statement if Walmart’s suppliers were operating in a perfectly competitive market?

b. What if it were operating in an imperfectly competitive market, specifically a monopsonistic market?

c. What would be the lower limit of the price Walmart could name?

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