Question:
What is Risk-bearing Economies of Scale?
Author: eric_galvaoAnswer:
-An Internal Economies of Scale -Big Firms go into different Product areas and Different Markets which can create a Predictable Overall Demand (If Demand for a Product falls in Pakistan, there may be a Different Product in Uganda getting Attention) -Large Firms can take more Risks as its other Activities (products) absorbs the Cost of Failure better
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