Answer Happy

Question 2 (Total: 10 marks) You own a conventional small business in a state. State government is now considering allowing online and large business to operate in the state. You oppose the large business to locate in your business's geographic market area. While proponents of large business point to the benefit to consumers because of increased competition, you worry that economies of scale might ultimately force your now profitable income out of business. Explain how economies of scale could result you being forced out of business in the long run. (10 marks)