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Optimal Size Of A Firm
The optimum size of a firm is a very subjective idea. The ways in which
size can help or hinder a firm vary from which angle you a looking at the
situation from. Size can have its benefits and its drawbacks, and each firm will
have its own benefits and drawbacks that come from either increasing in size, or
remaining small, and these will depend on the market in which the firm is in,
the current economy, and in some cases the preferences of the manager(s).
For example a small firm may be small for many reasons. It may be small
because it has just started out in business, and still has relatively little
funds, so although the ....
Word count: 863 - Page count: 4
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