Case Interview Prep

Category - Economics

Small companies represent a significant component of the United States economy. The following are the benefits of running a small company EXCEPT:
  1. quality of service
  2. maintaining low overhead
  3. easily gaining economies of scale
  4. production efficiency
Explanation
Answer: C - Small companies cannot easily gain economies of scale.

Key Takeaway: Small-sized companies possess a number of advantages in market economies including a high quality of service offered to customers and the ability to maintain lower overhead. These companies also report great production efficiency. Small companies, however, do not have the capability to easily gain economies of scale.
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