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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

Costs; 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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