# Lower capital costs give rise to smaller firms Correlary to [[Higher capital costs encourage larger firms]] Why is this? Is this true? <!-- #evergreen --> [Web URL for this note](http://notes.benjaminreinhardt.com/Lower+capital+costs+give+rise+to+smaller+firms) [Comment on this note](http://via.hypothes.is/http://notes.benjaminreinhardt.com/Lower+capital+costs+give+rise+to+smaller+firms)