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Multifaceted Factor Theory

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Introduction. The main idea of this study is to describe and explain the main points of the most difficult and multifaceted aspects of the theory of the firm and the necessity of understanding this question especially nowadays. Many economists have been interested in this problem and have been trying to comprehend (to learn/to study) this multifaceted aspect. It wants to be the exaggeration to say that everybody knows that firm is an enterprise and a social institute at the same time where certain people work together, has common ideas and desires to achieve profits in economic and spiritual spheres: in economic – getting money, in spiritual – getting satisfaction. Any firm in economically well-beefing and prosperous society has got stable …show more content…

As we have seen, Coase and Coasean claim the entrepreneur has the power to direct factors and it follows that he must be able to rely on having control over physical factors as well as expect obedience from labor factors. If this were not so, the entrepreneur should not manage to successfully imitate the price mechanism over time. F. Knight`s theory of the firm. The theory of the firm of Australian school. One of the most significant approaches to explaining and understanding the theory of the firm was the representatives of the Austrian school. The Austrian school sought the ways to overcome the one-sidedness of the theory of labor value. The authors of this concept for the study of economic processes began to use special tools – a study of the so-called limit values: marginal utility, marginal productivity, marginal product, etc. The main provisions of the theory of marginal utility have been formulated G. Gossen in 1844, however, the beginning of the massive penetration of marginalizes ideas in the economic literature dates from the middle of the 1880s, when economists were mathematicians published "the Theory of political economy" by W. S. Jevons, "Principles of political economy" K. Menger and "Elements of pure political economy" by L. …show more content…

The contribution of this school to the development of economic science is in part alternative and in part by the addition valgrisenche neoclassical Orthodoxy. According to some modern followers nieuwstribune schools, this trend differs in that it attaches particular importance to subjectivity, which is not limited to preferences but extended to expectations, time as a measurement of change, the fragmentation of information and the learning

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