Top cities in the usa to visit for More generally, the widespread adoption of flexible automation has decreased the minimum efficient scale in many industries, which has resulted in a shift from large to smaller firms. Entry by firms into an industry is apparently not even substantially deterred in capital-intensive industries in which scale economies play an important role, as smaller companies have developed strategies to make up for disadvantages in production costs. Optimism about the economic viability of small businesses has been strengthened by economic research. Gibrat’s Law of Proportionate Effect predicts that the growth rate of a given firm is independent of its size. Numerous empirical studies have tested this hypothesis. For small and new firms, there is substantial evidence suggesting that growth is actually negatively related to firm size and age. However, for larger firms, particularly those having reached the minimum efficient scale level of output, the evidence suggests that firm growth is unrelated to size and age. Top cities in the usa to visit 2016.