One reason why critics argue that large firms should not be broken up is that in some cases
A)large firms have a concentration of economic power.
B)large firms are less-efficient producers.
C)many smaller firms would be less-efficient producers.
D)there is no economic reason to break up large firms that may have some control over the market.

Question

Quizplus · Accepted Answer

Critics argue against breaking up large firms on the basis that many smaller firms resulting from such a breakup would be less efficient in production. This is because large firms often benefit from economies of scale, which allow them to produce goods and services more efficiently than smaller firms could.

One Reason Why Critics Argue That Large Firms Should Not