Why might firms continue to stay small even though expansion could create technical economies of scale? Which is not a likely explanation for this?
- ADemand for the product tends to change often and rapidly.
- BIndividual entrepreneurs wish to keep a tight personal control over their own firm.
- CThe entrepreneurs who establish the firms tend to be ambitious risk-takers.
- DThe market in which they operate is very specialised in nature, often selling unique products.