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An article in the Wall Street Journal during the Covid-19 pandemic noted that Thousands of small firms have been driven out of business while their
An article in the Wall Street Journal during the Covid-19 pandemic noted that "Thousands of small firms have been driven out of business while their larger counterparts have largely survived and, in some cases, even flourished." Source: Justin Lahart, "Covid Is Crushing Small Businesses. That's Bad News for American Innovation," Wall Street Journal, October 9, 2020. During the pandemic, what is a key advantage a larger firm in an industry might have had relative to a small firm? A. Smaller firms are not able to differentiate their products from larger firms, so it is harder for them to earn profit. B. Larger firms produce goods that people in a pandemic want to consume, while smaller firms often do not. C. Larger firms are more likely to reach minimum efficient scale than a smaller firm, and thus able to produce at a lower average cost. D. Larger firms sell more well-known products than smaller firms, so they do not have to adapt as much to the pandemic-related market changes as smaller firms
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