Small firms survive in some industries because:
A)the owner usually knows the workers by name.
B)the gains from specialization are high.
C)the incentives to shirk are low.
D)the cost of monitoring employees is low.

Question

Quizplus · Accepted Answer

Small firms can benefit from the gains of specialization, where employees become skilled in a particular task or function, leading to higher efficiency and productivity. This allows small firms to be competitive in industries where larger firms may have advantages in economies of scale. While the other options may also be benefits of small firms, they are not as essential to survival as specialization.

Small Firms Survive in Some Industries Because