Consumer Preference for Small vs. Large Firms
Discuss whether people would prefer to buy a product from a small firm or a large firm.
Market Structures and Competition
STEPS TO WRITE ESSAY 💡MAIN POINTS💡OVERVIEW
- Brief explanation of the importance of small and large firms in the economy
- Thesis statement: While small firms offer flexibility, personal service, specialization, and government subsidies, large firms provide lower prices, better-known brands, wider variety of products, and better quality products and after-sales service.
II. Advantages of buying from small firms
- Flexibility and quick response to changes in consumer demand
- Personal service and adaptation to customer requirements
- Specialization and production of high-quality products
- Government subsidies and avoidance of diseconomies of scale
III. Advantages of buying from large firms
- Lower prices due to economies of scale
- Better-known brands due to advertising
- Wider variety of products
- Better quality products and after-sales service
IV. Comparison of advantages
- Discussion of how the advantages of small and large firms compare to each other
- Examples of situations where one type of firm may be preferred over the other
- Recap of the advantages of small and large firms
- Final thoughts on the importance of considering both types of firms when making purchasing decisions.
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