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Exchange transaction in the given organisation? In a limit organisation costs inside
Firms will be equal or to organisation costs in other firm, or to costs,
Arising at the decision to give "organisation" of transaction to the mechanism of the prices.
The businessman will constantly experiment the big or smaller volume
The control, and thus balance will be saved. It sets a position
Balance for the static analysis. But it is clear that dynamic factors also
Are very important; research of how changes influence costs
The organisations in firm and on marketing costs, will allow to explain
The reasons of compression and firm expansion. Thus, we have a theory of the mobile
Balance. The aforementioned analysis will allow to clear also relations between
The initiative and management. The initiative means a prediction and operates through
The mechanism of the prices - through the conclusion of new contracts. Management in the own
Sense of a word simply reacts to changes of the prices and, accordingly,
Usually connects both functions, is obvious result considered
Above market costs. At last, this analysis allows us more precisely
To establish that is understood as "a limiting product" businessman. But
Development of this subject will withdraw us far from rather simple problem -
Developments of definition and clearing of concepts.
Dispute on limiting costs
I. A discussion Status
I WISH to discuss a question on that in this article, properly to establish the prices in
Conditions of decreasing average costs. In particular I wish to consider that
The decision of this question which is now familiar to the majority of economists and can
To be in brief stated so:
The sum paid for each unit of production (price), should be equal
To limiting costs;
As at falling average costs limiting costs appear
It is less, than averages, a total sum of payments it is insufficient for a covering of the full
Size on which full costs exceed total receipts (losses, as
Speak sometimes), should be carried on the bill of the government and become covered from
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