0
Because of uncertainty. Because of uncertainty, according to Frank H. Night (explained in his great work "Risk, Uncertainty and Profits"). But that's only one answer, anyway. You can count at least 15 more, but there is no defitinitive answer in economics "YET".
Wiki User
∙ 14y ago
Wiki User
∙ 14y agoBecause of transaction costs (see Coase, 1937), and the ability of firms to exploit economies of scale and scope. Previous to Coase in 1937, people believed it was to minimise on transport and production costs
Wiki User
∙ 15y agoMarkets comprise of producers and consumers. And producers are mostly firms which produce.
Wiki User
∙ 12y agoTo produce goods and services
Add your answer:
Earn +20 pts
What is the definition of real flow in economics?
The flows of factors of production that go from households through factor markets to firms and of the goods and services that go from firms through goods markets to households.
What is economics with micro economics and macro economics?
Microeconomics is literally "small" economics, which typically concentrates on the interrelatedness of single markets and firms. Macroeconomics is "big" economics and concentrates on the economy as a whole, international trade, etc.
What outlets do firms have to sell their output?
business markets and consumer markets
What are US firms at the forefront of in economic markets?
US firms are at the forefront of technological advances.
Define economics micro and macro economics?
You can think of microeconomics as a study of the "small" economy. So you're looking supply and demand for individual firms or individual markets for goods and services. Macro is "big" economics, or the study of whole markets. For example, micro would look at consumer choice and the market for specific goods, while macro would ask how fiscal policy would affect exchange rates.
What is the coverage of micro economics?
To do with individual consumers, markets and firms.
How to accurately apply micro and macro economics in a national and local context?
Macro economics means big firms and is the study of the economy at large.micro means small firms and business markets.
What is the definition of real flow in economics?
The flows of factors of production that go from households through factor markets to firms and of the goods and services that go from firms through goods markets to households.
What is economics with micro economics and macro economics?
Microeconomics is literally "small" economics, which typically concentrates on the interrelatedness of single markets and firms. Macroeconomics is "big" economics and concentrates on the economy as a whole, international trade, etc.
What outlets do firms have to sell their output?
business markets and consumer markets
What are US firms at the forefront of in economic markets?
US firms are at the forefront of technological advances.
Define economics micro and macro economics?
You can think of microeconomics as a study of the "small" economy. So you're looking supply and demand for individual firms or individual markets for goods and services. Macro is "big" economics, or the study of whole markets. For example, micro would look at consumer choice and the market for specific goods, while macro would ask how fiscal policy would affect exchange rates.
What are the 4 basic economic sectors?
Factor Markets, Households, Profuct markets, firms
Why do small firms continue to exist despite the issue of competition?
why do small firms continue to exist despite competition from large firms
Microeconomics and macroeconomics?
Microeconomics is the study of how households and firms make decisions and how they interact in markets. Microeconomics explores the patterns of supply and demand that determine how prices and outputs are established in individual markets. www.textbookvideos.com Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets.
Why do small firms exist?
Small firms exist because they help strengthen the economy. Smaller firms create jobs and pay taxes that help support the community.
Components of macro economics?
The components of macro economics are firms, households, financial institutions, government, exporters and importers.
