ECON 高手請進!!

2007-09-23 7:02 am
我有個econ問題
land sales 如何符合:market is a good way to organize economic activity?
Please give me some example or figures to support the question.
thank you!!

回答 (1)

2007-09-23 7:17 am
✔ 最佳答案
你呢條係咪關於Firm ge題目, 如果係,我可以答下你

Since people can either choose market coordination (ie. Invisible hand, price mechanism) or managerial coordination (ie. visible hand, direct instructions from manager to sub-ordinates) to organize economic (or production) activity,
as a maximizer, people will choose a method which involves lower transaction costs
ie. people will compare the benefit and cost of using managerial coordination, ie firm

cost of using firm :
-administrative cost
-cost of making error
-monitoring cost of shirking......etc

Benefit of using firm:
save the cost of
-exchange (coz market transaction↓)
-ascertaining product quality (firm asts as a specialist who monitor the quality)
-measuring (input owner is paid by a proxy instead of their MRP)

If benefit > cost, firm is a worthy way to organize economic activity
Otherwise, market is a good way to organize economic activity


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