In many regions of the country, it is common for Walmart stores and large supermarkets to stay open 24 hours a day, 365 days a year. You walk into a Walmart store with a friend late night to acquire a few home items. Your friend says, "I can't believe that these stores stay open all night. Only one out of fifteen checkout lines is open. There can't be more than ten shoppers in this store. It just doesn't make any sense for this store to be open all night."

1. Explain to your friend what conditions must be true for it to be to the advantage of Walmart to stay open all night.

2. Are the costs of rent, equipment, fixtures, salaries of management, and so on relevant when Walmart makes the decision whether to stay open all night? Why or why not?

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1 For the walmart store to stay open all 24 hours a day365 days a ... View the full answer