Discuss why the neoclassical theory of the firm cannot explain the skewed distribution of firm size

Neo-classical theory of the firm (perfectly competitive markets) Single product firms in an industry with a U-shaped average cost curve. No incentive to grow beyond this size (concept of “optimal” [industry] size). Convergence toward an “equilibrium” size and static optimization by the firm. The dispersion of firm size should be small, attributable to disequilibrium or mistakes and it will reduce over time as firms converge towards the equilibrium size. Fact-checking: The wide (and persistent) support of the firm size distribution even in narrowly defined industries and the asymmetric nature of it does not support this theoretical approach