A large producer with economies of scale always has a competitive advantage over smaller firms.

Question

Quizplus · Accepted Answer

Economies of scale can provide a competitive advantage in terms of lower unit costs, but they do not guarantee an overall competitive advantage. Smaller firms can compete effectively by being more flexible, innovative, offering better customer service, or targeting niche markets where larger firms may not operate as efficiently.

A Large Producer with Economies of Scale Always Has a Competitive