Don Boudreaux on Coase
EconTalk
00:00
The Cost of Using the Market
The firm itself is not a costless thing to operate. There are costs of operating a firm, I call these administrative costs. If the costs of using the market are too high at the margin, firms will emerge to reduce those costs. It's an astonishingly simple insight, but no one had it until cose discovered it. And this is a that runs throughout all ronald cos's work - he recognized when economists overlooked obvious questions.
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