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Optimal Size Of A Firm

Beginning of Essay
The optimum size of a firm is a very subjective idea. The ways in which size can help or hinder a firm vary from which angle you a looking at the situation from. Size can have its benefits and its drawbacks, and each firm will have its own benefits and drawbacks t ....

Middle of Essay
.... expanding his current business, setting up new shops, or taking over another business. The size of a business does however depend a great deal on the market which it is in. For example a business which makes specialist goods, or caters to only a very small number of people, will not be able to grow beyond the capacity of that market. This means that the optimum size for a business in a market with little growth and only a small number of prospective customers would be large enough to serve as many customers as it had market share for, but small enough to ensure that they don't over produce. If there is a fairly large market for the product/se ....

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