Why are some firms unable to reap economies of scale?

Question

I know that the size of the firm isn't the only reason. There are small firms with significant EOS.But in what cases will EOS be not significant or not present at all? I've tried google-ing this but failed to find a satisfactory answer. Please help ! THANKS :D

Answer 1

It is not just the size of the industry but it is also determined by the size of the market as well (small market for some products and larger market for items such as bread).  It can also be influenced by the type of industry if it is capital or labour intensive.