In: Economics
what would be the different results for dissimilar companies using the size analogy?
Size andrology in the companies or in the corporate structure
means the production at different scale means some production on
large scale and some production on small scale it also include the
greeting of the product and the division of the customer according
to their purchasing power efficiency
As per the skill of production the company’s production level is
also different.
Hear companies are not similar means companies are different in
their objects in the production efficiency for the level and the
types of product they are producing.
Results of these companies are different as per the production
level large companies are producing high production output and the
cover the most organised market in the economy in comparison to
this small companies are producing low level of production and
their level the requirement of regional and state level production
demand of the consumer and the local supplier.
The output and the result of large scale companies are stable in
the long run and the profit they are earning is normal
profit.
The output and the result of small scale companies are not stable
sometimes there supernormal profit in the short run but in the long
run the survival of these companies are difficult.