The Economic Boundaries of a Firm
A fundamental reason for the existence of companies is to reduce the costs that would arise from using the open market for every single activity (e.g., negotiating contracts, ensuring quality). If this is true, why don't successful companies grow indefinitely to produce every single input they need themselves? For instance, why doesn't a car manufacturer typically own its own rubber plantations, steel mills, and glass factories? Explain the economic factors that create a limit to the size and scope of a firm.
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Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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