What risk do small firm face when partnering with successful companies?

What risk do small firm face when partnering with successful companies?
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1 Answer

Answer :

They have to worry about not being heard. Often they will beswallowed up and forgotten about while the big partners take overeverything.
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If an industry is characterised by economies of scale then (1) barriers to entry are not very large (2) long run unit costs of production decreases as the quantity the firm produces increases (3) capital requirement are small due to the efficiency of the large scale operation (4) the costs of entry into the market are likely to be substantial

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Last Answer : long run unit costs of production decreases as the quantity the firm produces increases