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As the data.
Clearly that the alternative form of the organisation of economy which can reach
The same results with smaller costs, than arising at use
The market, will allow to increase value of manufacture. Many years ago I already
Has explained that the firm and represents such alternative to system,
Firms ", with. 33 - 55]. In firm individual transactions between the various
Are replaced by administrative decisions. For manufacture change thus is not present
Needs in transactions between owners of factors of manufacture. The land owner,
To which posesses the big ground, can use it
Variously, taking into account interference of various kinds of activity on the pure
The earth income, excluding thus need in the conclusion of transactions between those who
Carries out different kinds of activity. Owners of the big building or
Several next houses can operate in the same way. Using ours
Former terminology, it is possible to tell that the firm incorporates legitimate rights of all
The parties, and redistribution of kinds of activity will have the reason not
Redistribution of the rights, but administrative decisions on how should be
The rights are exercised.
From here does not follow, certainly, that administrative costs of the organisation
Transaction by means of firm necessarily has less, than costs of the superseded
Market transaction. But there, where working out of contracts is especially difficult, and
Attempt to describe that the parties have agreed to do or not to do
(For example, intensity and character of a smell or noise which are desirable or
Are inadmissible), will demand extensive and rather detailed document, and where, very much
Possibly, there would be desirable a long-term contract [for the reasons, which
Speak in my previous article ("the firm Nature" see, with. 39)], would be not
Surprising if possibility to solve a problem of harmful effects was
It is found in creation of firm or expansion already existing. Such decision
Gets accustomed everywhere where administrative costs of firm appear smaller,
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