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As appears possible to give scientific interpretation to statements about that,
That the firm becomes more or less, the firm becomes more, when
Additional transaction (which could be exchange transaction,
Co-ordinated through the mechanism of the prices) will be organised by the businessman, and it
Becomes it is less, when he refuses the organisation of such transaction.
There is a question, whether studying of forces which define the size of firm is possible?
Why the businessman not undertakes to organise on one transaction more or
It is less?
Knight believes that "the relation between efficiency and the size is one of
The most serious problems of the theory, as, unlike the same problem for
Factory, depends, mostly, on the person and historical accidents, instead of
From clearly distinguishable general principles. But this question vital, because
The prospect of exclusive incomes creates powerful stimulus for the continuous
And unlimited expansion of firms, and they should be counterbalanced others,
Manufacture of the monetary income) with growth of the sizes, that at least the rests
Competition were saved "Political
Science, Preface to the Reissue, London: London School of Economics, Profit, 1933, Knight Frank it, Risk and Uncertainty.
It seems that Knight considered impossible scientific understanding of the reasons defining
The sizes of firm. On the basis of the firm developed above the concept we will try now
To solve this problem.
It was supposed that occurrence of firms had a principal cause existence
Market costs. There is quite pertinent question (not reduced to
The stated Knight to reasons about monopoly). If with firm occurrence
Certain costs disappear and, actually, costs are reduced
Manufactures why market transaction in general are saved? than freedom in choosing loss., Some
Market costs can be eliminated, only if to deprive of the consumer
Choice possibilities; such are costs of retail trade. It is possible for itself
To present that these costs will appear so high that people will prefer
It will appear more valuably why all manufacture not
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