Despite the benefits large firms enjoy, it could be limited by the
Answer Details
Large firms enjoy several benefits, such as economies of scale, brand recognition, and bargaining power. However, the extent of these benefits could be limited by the size of the market they operate in. A firm can only grow as much as the market allows, and if the market is small or saturated, the firm's potential for growth and profit will also be limited. Additionally, the growth of specialization and technological advancements may also limit a firm's ability to maintain its competitive advantage, as smaller firms may be more nimble and able to adapt to changing market conditions. Therefore, despite their size and advantages, large firms still face limitations that can affect their success in the long run.