Advantages+and+Disadvantages+of+large+and+small+firms

We have already looked at the concepts of economies and diseconomies of scale. Here is a summary of the main economies and diseconomies of Scale:



 How do these concepts link with the advantages and disadvantages of large and small firms (it is obvious- don't over think this one!)

But how do we measure the size of a firm- when is a firm big or small? Please read P 101 in your Rob Jones textbook for this and make notes.

Why do firms grow large?



Despite all the advantages of being big there are far more small firms than large firms. Some industries like hair salons are dominated by small firms. Why do you think that is? Find other real life examples of industries dominated by small firms. Now find some industries that are dominated by large firms. (please add links to the padlets below)

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Here are some reasons why lots of small firms exist:

Student assessment task:



Extension Activity: How do firms grow? P 106-107 Jones textbook.