A small-scale manufacturing enterprise operating in an industry characterized by significant internal technical economies of scale will inevitably be forced out of business by large-scale competitors, regardless of geographic market fragmentation or customer demand for specialized customization.
Answer: Answer
Answer
The statement is false. Small-scale enterprises retain strong competitive viability alongside large-scale firms when market size is limited, products require custom tailoring or personal attention, or heavy transport costs isolate regional markets.
The statement is false because internal technical economies of scale do not guarantee total market dominance when market demand is limited, transport costs render centralized distribution uneconomical, or consumers prefer bespoke goods and personalized attention.
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Key Concept
Factors enabling the survival of small-scale production alongside large-scale firms