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Factors that tends to determine the size of an industry or firm
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[QUOTE="Mastergp, post: 271493, member: 85422"] Well as they are factors that tends to limit the size of the business they are other factors that also determine the size of an industry, and putting them into consideration would prove how business minded we are. They are some of this ways that tend to determine the size they include as following: The Market: The size of the market for a firm's product influences it size. If the market is small in terms of effective demand, the operation of the firm is bound to be small. Entrepreneurial ability : Ability to undertake risk and to manage large scale business is an important factor that determine the size of a firm. The size of such firm depends on the knowledge and experience needed for planning the operation. Technical nature of product or service : Firms producing perishable agricultural goods tend to produce to satisfy only local markets. They therefore tend to be small scale producers. Government policies: When government is ready to assist firms, it help to determine the size of operation. [/QUOTE]
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Factors that tends to determine the size of an industry or firm
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