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

Question

Responses

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

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

Answer 1

The response that best explains 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.

This reflects the challenges smaller firms face regarding economies of scale, resources, and market reach compared to larger firms, which can specialize and produce goods more efficiently.