Walmart impact on smaller communities


Please help with the following problem:

Question: When Walmart locates to a smaller town, often the local retailers (e.g., hardware, clothing, and appliance stores) are unable to successfully compete and are driven out of business. Why does Walmart have a cost advantage over its competitors and therefore is able to charge lower prices. If Walmart drove its competitors out of business, and behaved like an unregulated monopoly, what would happen to its prices and why?

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Macroeconomics: Walmart impact on smaller communities
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