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Economies of scale exist. Once those economies of scale lower prices, they allow previously nonexistent commerce to now become viable. Larger firms will benefi
by nindalf 4y ago
Economies of scale exist. Once those economies of scale lower prices, they allow previously nonexistent commerce to now become viable.
Larger firms will benefit more from economies of scale than relatively smaller firms, meaning their products and services will be cheaper. For most of the major products I mentioned, scale matters. All of those are dominated by large corporations thanks to the economies of scale.
That's one side. The other side is finance - certain processes are only viable with large capital expenditure, which only large companies can manage. For example, setting up a semiconductor foundry at the leading edge needs tens of billions of dollars of investment. Setting up a resource extraction operation would be cheaper but still require tens to hundreds of millions.
You seem to love the idea that a small firm can do anything. Great. Go out and do it, prove me wrong. Why don't you try to set up an artisanal semiconductor foundry? The day your company (or any small company) manages to compete with TSMC on price and process node, I'll eat my hat.
But if you can only talk the talk and not walk the walk, don't bother responding.