Full text: Small and Big Business

vanced countries, however, the decline in the capital- 
coefficient with size seems predominant. 
There are certain general factors which act in the opposite 
direction; An increase in scale (and consequently, markets) 
involves additional investment in transport and communica 
tion, power, etc., in shorty an infra-structure increasing 
disproportionately more than the firm's capacity. The burden 
of this investment is, however, ordinarily not borne by the 
firms, but for the greater part by governments, although 
to some extent large concerns do provide such infra 
structure investment, (for example power stations etc.'j 
This tentative picture of the problem can now be related to 
the historical development of the capital coefficient as it 
appears to most economists nowadays; The impression is 
that the capital-output ratio for society as a whole has 
remained roughly the same over the decades. L/ From the 
comparison of scale one might have expected it to decline 
since large aawr: firms have tended to replace small ones 
In so far as this v 
with the advance of technology, it did noty might bepartly 
due to the above mentioned factor (increasing infra- 
measured ^art cpnt»val<:c-j~-liaf lated-'-wtthr 
^Simon Kuznets, Capital in the American Economy. Princeton 
1961. Table 6, p. 80

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