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plants would count as small (or lower medium) sized, and
output per man would accordingly have a maximum at this level.
I cannot find anything enlightening in this use of language,
but it does in itself, of course, not contradict my picture
of the relations of technical progress and scale, which
requires in any case a description of the plant in terms of
several variables (man, output, capital).
I turn now to a point on which I would like to correct myself
again: Just as I was wrong to play down diseconomies I was too
unfavourable on the chances of the small firms, although my
remarks on their shrinking degree of independence were borne
out by the developments since.
One has to take into account the emergence and vast growth
of new industries mostly composed of small firms (new types of
service industries of various kinds, like repair shops and
laundries etc.). Further, the tendency for large industrial
concerns in some industries to subcontract work has been
widespread. In retail trade and service industries a kind of
polarization seems to take place in advanced industrial
countries/ On the one hand the bulk of essentials is traded
in self-service shops which are best carried on on a not too
small scale? on the other hand, special shops with expert
and personal service are established on a fairly small scale
in certain goods ("boutiques" for women's dresses etc.).