Question

In: Economics

what would be the different results for dissimilar companies using the size analogy?

what would be the different results for dissimilar companies using the size analogy?

Solutions

Expert Solution

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.


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