State one limitation of the operation of a supermarket.
Starting and operating a supermarket requires a large amount of capital.
Supermarket Operation: Identifying Limitations
The question asks to identify a limitation faced when operating a supermarket. Let's analyze the given options:
- Option 1: "Starting and operating a supermarket requires a large amount of capital." This represents a significant financial barrier and operational challenge, making it a clear limitation.
- Option 2: "A customer can find products from different brands at the same location." This describes the convenience offered by supermarkets, which is an advantage, not a limitation.
- Option 3: "They provide standard quality goods." This highlights a feature related to product sourcing and consistency, generally seen as a positive aspect or standard practice, not a limitation.
- Option 4: "They handle a wide range of goods." Similar to Option 2, this describes the extensive product selection available, which is a key benefit of supermarkets for consumers.
Conclusion on Supermarket Limitations
Based on the analysis, the need for substantial initial investment and ongoing funding is a primary limitation for starting and running a supermarket.
Correct Answer: The correct answer is Option A because the high capital requirement is a significant operational hurdle.
Important Questions from Markets
Under the oligopoly market, according to __________, each producer can always lower the price until the price becomes equal to the cost of production.
Because of price rigidity, firms under oligopoly face a ____ demand curve.
______ may be defined as a market situation in which market price is largely determined by the forces of total demand and total supply in the market.
Under ____ the cross elasticity of demand between the product of the firm and that of other commodity in the market is zero.
In a competitive market, _______ is the price maker.
