The correct answer is: Large scale firms enjoy economies of scale.
Economies of scale are cost advantages that a company obtains due to expansion. They can be achieved in a number of ways, such as through increased production, purchasing in bulk, and spreading fixed costs over a larger number of units.
Large firms are more likely to enjoy economies of scale than small firms because they can spread their fixed costs over a larger number of units. For example, a large factory may have a higher initial cost than a small factory, but it can produce more goods at a lower cost per unit.
Medium-sized firms may also enjoy some economies of scale, but they are not as likely to do so as large firms. This is because medium-sized firms are not as large as large firms, so they cannot spread their fixed costs as widely.
Small firms are the least likely to enjoy economies of scale. This is because they have the highest fixed costs per unit. For example, a small shop may have a higher initial cost than a large shop, and it may not be able to produce as many goods at a lower cost per unit.
In conclusion, large scale firms enjoy economies of scale because they can spread their fixed costs over a larger number of units.