08 Jun Question Thomas McCraw, at the time a p
Question
Thomas McCraw, at the time a professor at the Harvard Business School, wrote: “Throughout American history, entrepreneurs have tried, sometimes desperately, to create big businesses out of naturally small-scale operations. It has not worked.” What advantage would entrepreneurs expect to gain from creating “big businesses”? Why would entrepreneurs fail to create big businesses with “naturally small-scale operations”? Illustrate your answer with a graph showing long-run average costs.
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