What is the main advantage that very large companies have over very small companies? What is this advantage called and name two ways that they get it?

Question 11 options:

Jordan quit his former $80,000/year job and took $200,000 out of an investment fund that had an annual growth rate of 12%. He used the money to start a new restaurant business. In a typical year the restaurant had the following financial results:

Sales Revenue $500,000

Cost of Food/Drink 200,000

Salaries 100,000

Other Expenses 75,000.

Jordan's accounting profit is ...

Jordan's economic profit is

Should Jordan stay in the restaurant business? (yes or no)

Explain why a company would experience diminishing returns in the short-run. How can they overcome this problem in the long-run?