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Terms of hierarchical submission. Economic it assumes that all kinds of economic activitiesAre organised. So, buyers and sellers in the markets collectively choose the purposes,
Distribute functions between set of people and remunerate those who
Promotes success. Even obviously simple economic problem like delivery of eggs
By a breakfast assumes a network of interactions between thousand people in the different
The countries which are not included into any hierarchical organisation, but thus
Each of them executes the small role precisely co-ordinated with
Activity of others. The problem could not be executed with the same reliability, with
What it occurs in a capitalist economy if the markets were not
The joint purposes, to distribution between many experts of work on
To achievement of these purposes and to maintenance of the stimulus remunerating for fulfilment
Works.
At a choice between the market and hierarchy as means of the organisation economic
Activity needs to consider two aspects. As to firms, in which usually See the basic units of an economic life some of them are organised
Hierarchically, others - are not present. The second aspect concerns economy as a whole: on
To be organised hierarchically or it or in any combination.
As a variety of forms and the sizes of firms is great, number of possible variants
Combinations of hierarchical and market methods of the organisation practically
Those who underline efficiency of the organisation of economy through the markets, in
The validity mean something it, than the simple assertion that
At times the less than organisation, the better. In practice they assert that at
Some circumstances the markets supply more effective coordination
Efforts of set of people, than command systems (if to measure efficiency by that,
As production satisfies requirements of participants and is how much economical at
It resources) are used. In favour of the superiority of the market organisation usually
Put forward also that argument that the market remunerates and punishes more strongly and
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