Although small businesses tend to enjoy a higher profit margin due to their economies of scale, large businesses are often better at distribution.

Question

Quizplus · Accepted Answer

Small businesses typically do not benefit from economies of scale in the same way large businesses do; economies of scale generally lead to lower costs and potentially higher profit margins for larger businesses due to their ability to buy in bulk, streamline production, and spread costs over a larger output.

Although Small Businesses Tend to Enjoy a Higher Profit Margin