Question: While a professor at the Harvard Business School, the late Thomas McCraw wrote: Throughout American history, entrepreneurs have tried, sometimes desperately, to create big businesses

While a professor at the Harvard Business School, the late Thomas McCraw wrote: "Throughout American history, entrepreneurs have tried, sometimes desperately, to create big businesses out of naturally smallscale operations. It has not worked." What advantage would entrepreneurs expect to gain from creating "big businesses"? Why would entrepreneurs fail to create big businesses with "naturally small-scale operations"? Illustrate your answer with a graph showing long-run average costs.

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