Yes. Anything that does not benefit from either network effects or economies of scale should not scale. Network effects - If I created the first telephone net

Yes. Anything that does not benefit from either network effects or economies of scale should not scale. Network effects - If I created the first telephone network, the first phone is basically a paperweight, but the more customers I convince to buy, the more useful each phone is to my other customers. Economies of scale - Similarly, if I have a car company, the more I scale, the more efficient I can become (I can invest more in engineering and machinery).