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Surrounding this centre. The situation is represented on the diagramme, on which And, In and With
Represent different manufactures.
firm.gif (3128 bytes)
Imagine the businessman who begins that supervises
Transaction of an exchange from X. As it expands manufacture of the same
Product In, organizational costs grow, while during some moment they not
Will be made even to costs for another, but is closer to the located product. On a measure
It will start to cover expansion of firm more than one product (And and). Such
The treatment of a problem is obviously incomplete
There is only one of the factors influencing costs of the organisation, as the site has been shown above, but it is necessary,
To show that the simple proof of that the curve of costs has
The positive inclination, does not impose a limit for the size of firm. Here we
Have considered only a case of a perfect competition; a case of the imperfect
It is represented to a competition obvious.
To define the size of firm, it is necessary to consider market costs (i.e.
Costs of use of the mechanism of the prices) and costs of the organisation at the various
Businessmen, and only after that we can define, how much products
Each firm will make and how much each product it will make.
Then we will see that Shouv in the article about "an imperfect competition" p. 115, Shove,
Imperfection of the Market asked questions, on which Dzhoan Robinson
With its device of curve costs cannot respond. In connection with demand growth in
Suburbs, cannot give the answer., it is that question, on which device used
Dzhoan Robinson, Shouv asks: "...
Why former firms did not open branches in suburbs? "If the argument
The present article it is correct and effect of the prices appointed suppliers noted factors thus will appear
It is necessary to find out only, whether there corresponds the concept of firm developed here
To that exists in the real world. The best approach to a question that
There is a firm in practice, is to consider legal relations, usually
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