SSC MTS EXAM

Detailed explanation-1: -Small firms are often relatively easy to establish, and generally do not require complex rules and procedures to set them up. Profit maximisation may not be the driving force for all businesses, such as not-for-profit organisations. Hence, remaining small does not conflict with the profit maximisation objective.

Detailed explanation-2: -Flexibility, generally lean staffing, and the ability to develop close relationships with customers are among the key benefits of small businesses. The digital communication revolution has significantly lowered the cost of reaching customers, and this has been a boon to small startups and big businesses alike.

Detailed explanation-3: -Answer and Explanation: When there are many small firms in a particular industry, perfect competition is created. In other words, a competitive market will emerge.