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Coase noted, however, that there are a number of transaction costs to using the market; the cost of obtaining a good or service via the market is actually more than just the price of the good.
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In general, making the firm larger will initially be advantageous, but the decreasing returns indicated above will eventually kick in, preventing the firm from growing indefinitely. Summary[ edit ] Given that production could be carried on without any organization, Coase asks, "Why and under what conditions should we expect firms to emerge?
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