It is impossible for a firm to be competitive if its output volume is significantly below the Minimum Efficient Plant Size or Minimum Efficient Scale

Question

Quizplus · Accepted Answer

While achieving economies of scale through a larger output volume can help a firm become more competitive, it is not impossible for a firm with a lower output volume to compete if it can differentiate its products or find a niche market. Additionally, with advancements in technology and production techniques, the minimum efficient plant size or scale may be decreasing over time.

It Is Impossible for a Firm to Be Competitive If