Firm Economies
The theory of the firm considers what bounds the size and output variety of firms. This includes how firms may be able to combine labour and capital so as to lower the average cost of output, either from increasing, decreasing, or constant returns to scale for one product line or from economies of scope for more than one product line.
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Famous quotes containing the word firm:
“Baltimore lay very near the immense protein factory of Chesapeake Bay, and out of the bay it ate divinely. I well recall the time when prime hard crabs of the channel species, blue in color, at least eight inches in length along the shell, and with snow-white meat almost as firm as soap, were hawked in Hollins Street of Summer mornings at ten cents a dozen.”
—H.L. (Henry Lewis)