I think what you mean by economies of scale are purchasing EoS. There are, I believe, many other forms of EoS that do not revolve around bulk discounts when buy

I think what you mean by economies of scale are purchasing EoS. There are, I believe, many other forms of EoS that do not revolve around bulk discounts when buying raw materials. For example there are EoS that revolve around borrowing from banks [1], which is something that every big business regardless of industry does. Also economies of scale do work in software/creative ventures. However these tend to be cancelled out by other diseconomies of scale that are caused primarily by ineffective communication, aversion to change, and people (and government's) changing attitudes to larger companies [2]. What you referred to about creative teams being more cost-effective the smaller the company follows logically from most diseconomies of scale. For example in large companies the biggest decision makers tend to be isolated from the results of their decisions. This is in part because decisions take many weeks/months to be properly evaluated by a team of analysts (who may suffer from their own economies of scale if the business is large enough) and partly (I don't think this is written about but just my own opinion) because the biggest decision-makers will have the most authority and hence their subordinates will not be eager to tell them that their decisions had a negative response. If anybody finds any fault in this comment please reply to it. Please be polite. [1]: when a large company borrows from a bank they usually obtain lower interest rates as large companies usually tend to borrow large sums of money on which even a low interest is still very high. [2]: if a company like Google makes decisions that could, from 1 particular angle, be considered as anti-competitive the government is more likely to consider the situation from that 1 particular angle rather than if a smaller company takes the same decision. However, this assumes a perfectly functional government in a MEDC (as LEDCs won't usually go after monopolies since they want foreign investment from large companies) that also happens to be non-corrupt