According to Alfred Chandler (1977), big business could be justified, at least in part, by
(a) a rapid rate of innovation among big firms.
(b) periodic recessions in which alert big businessmen buy out bankrupt firms and expand operations.
(c) a relatively low rate of bankruptcies among big firms.
(d) its ability to take advantage of scale economies—big business could best take advantage
of technology and economies resulting from large-scale production processes.
(d)
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The market system does not produce public goods because:
A. there is no need or demand for such goods. B. private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them. C. public enterprises can produce such goods at lower cost than can private enterprises. D. their production seriously distorts the distribution of income.
When the consumer spends a small portion of his income on a good, demand will be
A. elastic. B. unit-elastic. C. inelastic. D. elastic, unit-elastic or inelastic depending upon supply.