Optimal Size Of A Firm The optimum size of a firm is a very subjective idea. The ways in which size can help or hinder a firm vary from which angle you a looking at the situation from. Size can have its benefits and its drawbacks, and each firm will have its own benefits and drawbacks that come from either increasing in size, or remaining small, and these will depend on the market in which the firm is in, the current economy, and in some cases the preferences of the manager(s). For example a small firm may be small for many reasons. It may be small because it has just started out in business, and still has relatively little funds, so although the owner/manager may have as