Size of Firms

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  • Why do some firms grow, and some stay small?
    • Why do firms grow?
      • To increase market share
      • To benefit from greater profits
      • To increase sales
      • To increase economies of scale
      • To gain market power
      • To satisfy managerial ambitions
      • Make the most of an opportunity
      • Gain expertise
    • Why do some firms stay small?
      • Barriers to entry
        • Legal barriers
        • Marketing barriers
        • Pricing barriers
        • Technical barriers
      • Niche market businesses
      • Lack of resources
      • Minimum efficient scale
      • Lack of motivation
      • Avoiding potential buyers
      • Tax thresholds


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