Final answer:
New firms have difficulty achieving economies of scale due to barriers such as lack of ability to benefit from comparative advantage in international trade and lack of competitive pressure from other firms within their economy.
Step-by-step explanation:
Economies of scale refer to the cost advantages that a firm gains when it operates on a larger scale of production. These cost advantages can arise due to factors such as specialization, bulk purchasing, and efficient use of resources. However, new firms often struggle to achieve large size and benefit from economies of scale due to various barriers to entry.
One barrier is the lack of ability to benefit from comparative advantage in international trade. Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than other countries. When new firms are unable to benefit from comparative advantage, they may face difficulties in competing with larger, more established firms.
Another barrier is the lack of competitive pressure from other firms within their economy. In smaller economies with fewer competitive firms, there is less pressure for firms to provide goods and prices that consumers want. This can make it challenging for new firms to achieve the large size necessary to acquire economies of scale.