The more firms a studio does, the lower the overall risk that a single bad film will ruin a firm's balance sheet. … "Economies of Scale for a Movie Studio" will have a long-term positive impact on the this entity, which adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for this entity. "Economies of Scale for a Movie Studio" is an easily defendable qualitative factor, so competing institutions will have a difficult time overcoming it.