Why... are there any market transactions at all? Why not all production carried on by one big firm?... First, as a firm gets larger, there may be decreasing returns to the entrepreneur function, that is, the costs of organizing additional transactions within the firm may rise... Second, it may be that as the transactions which are organized increase, the entrepreneur fails to place the factors of production in the uses where their value is greatest, that is, fails to make the best use of the factors of production... Finally, the supply price of one or more of the factors of production may rise, because the "other advantages" of a small firm are greater than those of a large firm.
Ronald CoaseRelated topics
additional best carry entrepreneur increase large market place production rise second small use value returns uses costsRelated quotes
Wherever thou seest a great end, be sure of a great beginning. Where a monstrous and painful destruction appals thy mind, console it with the certainty of a large and great creation. God is there not only in the still small voice, but in the fire and in the whirlwind..... The greater the destruction, the freer the chances of creation; but the destruction is often long, slow and oppressive, the creation tardy in its coming or interrupted in its triumph. The night returns again and again and the day lingers or seems even to have been a false dawning. Despair not therefore but watch and work. Those who hope violently, despair swiftly: neither hope nor fear, but be sure of God's purpose and thy will to accomplish.
Sri Aurobindo
During the lengthy process of production the business world is incurring outgoings in terms of money-paying out in money for wages and other expenses of production-in the expectation of recouping this outlay by disposing of the product for money at a later date. That is to say, the business world as a whole must always be in a position where it stands to gain by a rise of price and to lose by a fall of price. Whether it likes it or not, the technique of production under a regime of money-contract forces the business world always to carry a big speculative position; and if it is reluctant to carry this position, the productive process must be slackened.
John Maynard Keynes
Evolutionary psychology was the organizing framework-the source of "explanatory adequacy” or a "theory of the computation”-that the science of psychology had been missing. Like vision and language, our emotions and cognitive faculties are complex, useful, and nonrandomly organized, which means that they must be a product of the only physical process capable of generating complex, useful, nonrandom organization, namely, natural selection. An appeal to evolution was already implicit in the metatheoretical directives of Marr and Chomsky, with their appeal to the function of a mental faculty, and evolutionary psychology simply shows how to apply that logic to the rest of the mind.
Steven Pinker
One can in particular interpret the proposition as a statement conditions under which the simplicity of incentive structure and the economies of information handling characteristic of a competitive market organization can be secured without loss of efficiency of allocation... The price system carries to each producer, resource holder, or consumer a summary of information about the production possibilities, resource availabilities and preferences of all other decision makers. Under the conditions postulated, this summary is all that is needed to keep all decision makers reconciled with a Pareto optimal state once it has been established.
Tjalling Koopmans
I'm very aware that this programme may be regarded as bleak or depressing - an increasing population with an ever decreasing supply of resources – but humans have capabilities that animals don't: to think rationally; to study; to plan ahead. The number of people on the planet depends on the personal decisions we each make regarding the number of children we have even setting aside the moral responsibility we have to protect other species, if we continue to damage our ecosystem, we damage ourselves. Its clear that we'll have to change the way that we live and use our resources. We're at a crossroads where we can chose to cooperate or carry on regardless. Can our intelligence save us? I hope so. m46s24-m47s15.
David Attenborough