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There are costs of an establishment of the corresponding prices; carrying out costsNegotiations and the conclusion of the separate contract on each market transaction;
There are also other costs. Certainly, the firm is inseparable from the market, and it is impossible to eliminate
All contract relations. But the owner of the factor of manufacture should not
To conclude sets of contracts with owners of other factors of manufacture, with
With which it co-operates in firm. The firm is favourable because activity in the market is interfaced to some
Costs, and having created the organisation and operating placing of resources
Administrative methods, it is possible to get rid of these costs. But, of course,
The firm should solve the problems with costs smaller, than costs
The market transaction superseded by it as if the firm has appeared it is incapable
To reach it, return to the market is always possible. And, of course, for each firm
Always there is a possibility to address to other firm which will cope with a problem
With lower costs. The organisation of branches, thus, depends on a parity between costs
On realisation of market transaction and costs on the organisation of the same
Operations in firm which can carry out the same problem more economically. Except
That, costs on the organisation of activity in any separate firm Depend on it carries out what else kinds of activity. The given set Activity kinds can facilitate performance of one problems, but complicate Performance of others. These mutual relations define the valid
The branch organisation. But, having reached this conclusion, is how much far we
Have promoted? We know very little about costs of realisation of the market Transaction, no less than about on what the size of these costs depends; we
It is almost known nothing about how the size of costs depends on the various
Groupings of kinds of activity in firm. Our knowledge does not go further that fact,
That the result of a practical establishment of these mutual relations is that that
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