What economic concept did Coase's "Nature of the Firm" help to explain?
Inflation
Fiscal Policy
Limits of Firms
Monetary Policy
Answer
**Limits of Firms:** Ronald Coase's groundbreaking work, "The Nature of the Firm," revolutionized our understanding of why firms exist and their optimal size. According to Coase, the boundaries of a firm are determined by the cost of organizing production within the firm compared to the cost of conducting market transactions.
Coase's Economic Conundrums: Unraveling the Legacy of a Nobel Laureate
More Questions
Coase served as the editor of which important journal?
What did Coase suggest could overcome externalities if not for transaction costs?
What did Coase see as the main role of the corporation?
Coase received his education at which institution?
Which award did Coase receive from the University of Chicago?
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