The economic theory of the firm

posted by
September 20, 2011
Ludwig von Mises Institute
by Per Bylund  
Posted in Commentary

"What is a firm? This may not seem like a question in lack of an answer. In the United States, as in most other countries, it is a registered, regulated entity acting legally as a person. But economically, the legal definition is irrelevant: the economic function of the 'firm' is not its legal status -- if it were, then the law rather than the organization would provide the market with that function." (09/20/11)  

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