# Higher capital costs encourage larger firms * Correlary to [[Lower capital costs give rise to smaller firms]] * See the increased return to scale in the 19th century from [[mokyrLeverRichesTechnological1992]] <!-- #stub --> [Web URL for this note](http://notes.benjaminreinhardt.com/Higher+capital+costs+encourage+larger+firms) [Comment on this note](http://via.hypothes.is/http://notes.benjaminreinhardt.com/Higher+capital+costs+encourage+larger+firms)