When a firm cannot realize the cost savings from economies of scale all by itself, it may join in a strategic alliance with other firms so that together both firms will have sufficient volume to be able to gain the cost advantages of economies of scale.

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This statement is true. Strategic alliances can help firms achieve economies of scale that they may not be able to realize on their own. By combining resources, firms can benefit from bulk discounts on supplies and materials, production efficiencies, and increased bargaining power with suppliers and distributors.

When a Firm Cannot Realize the Cost Savings from Economies