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Economies of scale enable large businesses to reduce production costs, allowing them to offer lower prices and invest in improvements. However, excessive growth can lead to diseconomies of scale, resulting in management issues, reduced morale, and higher operational costs. Small firms can thrive without economies of scale by providing specialized services and making quick decisions, while large firms must carefully manage growth to avoid inefficiencies that diminish public benefits.

Author

winnielin091030

Language

EN