As compared to larger competitors, smaller firms benefit from lower unit costs which they achieve with lower sales volumes.

Name: As compared to larger competitors, smaller firms benefit from lower unit costs which they achieve with lower sales volumes.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

Smaller firms often have higher unit costs compared to larger competitors due to economies of scale, which allow larger firms to spread fixed costs over a larger number of units, reducing the cost per unit.

As Compared to Larger Competitors, Smaller Firms Benefit from Lower