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Pg.387
a. Small firms can survive successfully in the hotel industry for many reasons.
Firstly, economies of a scale may be limited meaning that these firms will be
able to operate at the minimum efficient scale of production. Secondly, barriers
to entry may be low allowing firms to enter the…

Page 2

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both businesses to merge both of the knowledge, skills of the firms which
could make them more successful.

b. With the larger size due to the combined company it will make it easier for
them to be price makers due to providing more products that shops need to
sell thus…

Page 3

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a. From the data it can be assumed that Ford's purchase of KwikFit did not
led to greater economic efficiency as it was sold it 3 years later indicating an
economic failure. However it can be argued that this does not really mean
that it did not led to greater…

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