Small Firms: If a firm experiences lower than average costs while expanding it can lower the prices of the products. This results in them capturing more market share. If a firm does not experience this(internal diseconomies) it might limit the growth of the firm.

Question

If a firm experiences lower than average costs while expanding it can lower the prices of the products. This results in them capturing more market share. If a firm does not experience this(internal diseconomies) it might limit the growth of the firm.

Nyssa Gupta · Accepted Answer

Size of firms-
> Internal economies and diseconomies of scale <

Small Firms

If a firm experiences lower than average costs while expanding it can lower the prices of the products. This results in them capturing more market share. If a firm does not experience this(internal diseconomies) it might limit the growth of the firm.

Size of firms- > Internal economies and diseconomies of scale <

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