Page "Economics" Paragraph 45
from
Wikipedia
People frequently do not trade directly on markets.
Instead, on the supply side, they may work in and produce through firms.
The most obvious kinds of firms are corporations, partnerships and trusts.
According to Ronald Coase people begin to organise their production in firms when the costs of doing business becomes lower than doing it on the market.
Firms combine labour and capital, and can achieve far greater economies of scale ( when the average cost per unit declines as more units are produced ) than individual market trading.
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