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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 i ....

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.... share for, but small enough to ensure that they don't over produce. If there is a fairly large market for the product/service that a company is providing, then there is likely to be a large amount of competition in the market. This means that it would be fairly hard for the company to grow in that market unless they did one of three things. Firstly they could come up with a better and cheaper product then the rest of their competitors, if their customers noticed this then the customers would choose their product over their competitors, leading to g ....

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