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Organisation costs, it will strengthen the tendency to reduction of the sizes of firm.

The illustration of action of these dynamic forces is given by Moris Dobb (Dobb Maurice,

Russian Economic Development Since the Revolution, N. Y.: it P. Dutton AND Co.,

1928, p. 68): "C disappearance of forced labour of factory, i.e. Institutions,

On which work was organised by means of a switch of the supervisor, have lost the

raison d'etre up to the moment, when after 1846 introduction of the impellent

Installations has returned sense of the factory organisation ". It is important to realise that transition from

- manufactures to factory was not simply historical accident, But it is caused by action of economic forces. It shows that fact that Return from factory system to it to manufacture as was in is possible

Russia, and on the contrary. A being of serf system that to the mechanism of the prices not

Allow to operate. It generates need in a certain organizer. However when The serfdom disappears, possibility for action opens

The mechanism of the prices. Only when mechanisation has collected workers in one place, became

Favourable replacement of the mechanism of the prices and firm were born anew.]

It is necessary to notice that the definition of firm made above can be used,

More precisely to define value of terms "combination" and "integration" [it Often name "vertical integration", and a combination thus name "Horizontal integration"]. The combination takes place, when transaction,

One. It represents integration if switches on the organisation Transaction which were distributed before among businessmen through The market mechanism, firm can carry out expansion on each of these Directions or at once on both. All "structure of a competitive economy" Becomes accessible to interpretation by means of usual technics economic The analysis. III.

It is impossible to tell that economists have absolutely ignored the problems considered

Above, and now it is necessary to understand, in what advantage of the explanations set forth above

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