why firms decide to stay small/big Flashcards by Andriy VALKOVYCH | Brainscape

Q

reasons for firms to remain small(2)

A

niche markets - despite being small they still generate profits
may fear diseconomies of scale(MES is very low)

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Q

reasons for growth of some firms(3)

A

economies of scale
aim to increase market power/makert share
successful growth strategies (predatory pricing)

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Q

A

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