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It is carried out by one big firm? There are some possible explanations.
First, with increase in the sizes of firm reduction of the income can begin from
Enterpreneurial function, differently - costs on the organisation
Additional transaction in firm can increase. This argument
Assumes that exchange transaction in the market can be considered as
Homogeneous that actually not so. Details are considered more low. it is natural, should
To be reached a point, in which costs on the organisation of one additional
Transaction in firm are equal to costs of realisation of transaction on the opened
The market or to organisation costs other businessman. Secondly, can
To appear that in process of increase in quantity of carried out transaction
The businessman appears is incapable to use factors of manufacture with
The highest benefit, i.e. To place them in such points of manufacture, where they
Possess the highest value. Besides, the point, in which should be reached
Costs from an unproductive expenditure of resources will be equal to the market
To costs on exchange transaction in the open market or to losses at the organisation
This transaction by other businessman. At last, the price of the offer of one or
Several factors of manufacture can increase that "the other
Advantages "at a small firm more than at the big. [Question discussion about
Changes of the price of the offer of factors of manufacture in firms of the various size
See at it A. G. Robinson in "The Structure of Competitive Industry" (London:
Increases together with the sizes of firm as people prefer to head
Small independent business instead of to be heads of departments in big
Business. Jones Eliot, The Trust Problem in the United States, N. Y.: Macmillan
& Co., 1921, p. 231; Macgregor D. H., Industrial Combination, London: G. Bell
& Sons, 1906, p. 63. It is the general argument of those who justifies a policy
Rationalisation. Assert that firms it would be more effective than the size,
If not spirit of individualism of small businessmen which prefer
To save independence, in spite of the fact that rationalisation and growth
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