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Topic theory of the firm (Production and costs (production in the long run…

- - - - specialization of labor or management, leading to greater efficiency
        
        efficiency of larger machines that can be afforded by larger firms
        
        spreading of marketing, advertising and R&D costs over larger quantities of output
        
        indivisibilities of machines or production processes; they cannot be "divided" into smaller sizes for use by small firms
        
        bulk buying of inputs, or buying large quantities of inputs by larger firms that need large supplies, offered at lower prices per unit
        
        lower-cost financing, or borrowing at lower interest rates and better terms, often available for larger firms
    - - management problems due to poor coordination and monitoring of firms activities
        
        communication difficulties resulting in inefficiencies
        
        low worker morale and motivation if they are an unimportant part of a very large firm