Which of the following explains why many small businesses struggle to compete with larger firms?(1 point)

Question

Responses

Small businesses are unable to offer the same variety of products that larger firms are able to produce.
Small businesses are unable to offer the same variety of products that larger firms are able to produce.

Small businesses are unable to sell their goods at the higher prices set by larger firms.
Small businesses are unable to sell their goods at the higher prices set by larger firms.

Small businesses are unable to specialize to the degree that larger firms are able to.
Small businesses are unable to specialize to the degree that larger firms are able to.

Small businesses are unable to provide the kinds of products that consumers want.

Answer 1

The best explanation for why many small businesses struggle to compete with larger firms is:

Small businesses are unable to specialize to the degree that larger firms are able to.

Larger firms often have more resources, allowing them to specialize in production processes, which can lead to greater efficiency, lower costs, and the ability to offer a wider range of products at competitive prices. This can put small businesses at a disadvantage.