Large firms in an industry have cost advantages over small firms in same industry. Explain the condition for this statement to be true.

Larger
firms have greater access to pools of resources. They can buy more goods in bulk provided that
there is a demand for those goods once ready for sale. Larger firms can also deliver larger
varieties of goods than smaller businesses. Some goods that do not sale as well can be carried
along with best-sellersthis gives larger businesses greater flexibility in deciding what to keep
in stock. Smaller stores, on the other hand, have to keep as much of the business as profitable
as possible.

Larger firms, especially established ones, are seen as more
stable among investors. Investors often see...