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1、TheNatureoftheFirm(1937)R.H.COASEEconomictheoryhassufferedinthepastfromafailuretostateclearlyitsassumption.Economistsinbuildingupatheoryhaveoftenomittedtoexaminethefoundationsonwhichitwaserected.Thisexaminationis,however,essentialnotonlytopreventthemisunderstandingandneedlescontroversywhicharise
2、fromalackofknowledgeoftheassumptionsonwhichatheoryisbased,butalsobecauseoftheextremeimportanceforeconomicsofgoodjudgmentinchoosingbetweenrivalsetsofassumptions.Forinstance,itissuggestedthattheuseoftheword“firm”ineconomicsmaybedifferentfromtheuseofthetermbythe“plainman.”'Sincethereisapparentlyatr
3、endineconomictheorytowardsstartinganalysiswiththeindividualfirmandnotwiththeindustry,2itisailthemorenecessarynotonlythatacleardefinitionoftheword"firm"shouldbegivenbutthatitsdifferencefromafirminthe"realworld,"ifitaists,shouldbemadeclear.Mrs.Robinsonhassaidthat"thetwoquestionstobeaskedofasetofas
4、sumptionsineconomicsare:Aretheytractable?and:Dotheycorrespondwiththerealworld?"3Though,asMrs.Robinsonpointsout,"Moreoftenonesetwillbemanageableandtheotherrealistic,"yettheremaywellbebranchesoftheorywhereassumptionsmaybebothmanageableandrealistic.Itishopedtoshowinthefollowingpaperthatadefinitiono
5、fafirmmaybeobtainedwhichisnotonlyrealisticinthatitcorrespondstowhatismeantbyafirmintherealworld,butistractablebytwoofthemostpowerfulinstrumentsofeconomicanalysisdevelopedbyMarshall,theideaofthemarginandthatofsubstitution,togethergivingtheideaofsubstitutionatthemargin.4Ourdefinitionmust,ofcourse,
6、"relatetoformalrelationswhicharecapableofbeingconceivedexactly."5IItisconvenientif,insearchingforadefinitionofafirm,wefirstconsidertheeconomicsystemasitisnormallytreatedbytheeconomist.LetusconsiderthedescriptionoftheeconomicsystemgivenbySirArthurSalter6.“Thenormaleconomicsystemworksitself.Forits
7、currentoperationitisundernocentralcontrol,itneedsnocentralsurvey.Overthewholerangeofhumanactivityandhumanneed,supplyisadjustedtodemand,andproductiontoconsumption,byaprocessthatisautomatic,elasticandresponsive.”Aneconomistthi
