The Capitalist Corporation and the Socialist Firm
The Standard theory of production and exchange has provided fundamental insights into social problems that find their source in scarcity. It has demonstrated that, in a competitive equilibrium, the extent of exchange is consistent with the equimarginal principle. The theory has suggested testable implications for a number of world events and, most significantly, explained the efficiency characteristics of competitive markets.
KeywordsTransaction Cost Social Institution Capital Good Bank Credit Liquid Asset
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