When a firm has high levels of production,it is often able to purchase and use manufacturing tools that cannot be kept in operation in small firms.

Question

Quizplus · Accepted Answer

This statement is true because larger firms have more financial resources to invest in expensive manufacturing tools, and they are able to achieve economies of scale when producing at high levels. Small firms, on the other hand, may not have the capital or demand to justify the expense of certain tools, and may have to rely on manual or less efficient processes.

When a Firm Has High Levels of Production,it Is Often