What are fixed costs, and how does Aldi keep their fixed costs lower than a traditional grocery store? What are variable costs, and how do they lower their variable costs?

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Read both of the following newspaper articles about Aldi discount grocery stores:

Cut and paste this URL into your browser: http://www.forbes.com/sites/thehartmangroup/2015/04/14/aldi-is-a-growing-menace-to-americas-grocery-retailers/#4d4fe2393e6a

http://www.slate.com/blogs/browbeat/2013/12/02/aldi_grocery_store_best_in_america_related_to_trader_joe_s.html (Links to an external site.) (Links to an external site.)

Read another article about Aldi (there are lots online) to get more information about this rapidly growing chain of discount grocery stores. They have bought land for two stores in Baton Rouge.

PROVIDE A LINK TO THE ARTICLE FOR ME TO CHECK. PUT THE LINK IN YOUR INITIAL POST.

What are fixed costs, and how does Aldi keep their fixed costs lower than a traditional grocery store? What are variable costs, and how do they lower their variable costs? Use examples of each from the articles. Would you shop at a store like this? Why or why not?

What is the trade-off for lower prices?

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