Alchian and Demsetz’s
Instruction: Read “Production, Information Costs, and Economic Organization” by Alchian and Demsetz (1972) which is available on Blackboard and respond to the following questions:
1) Why the information costs explain the rise of firms?
2) How Alchian and Demsetz’s argument is differing than Coase’s in his famous article “The Nature of the Firm” (1937)?
3) Discuss one or more things that you disagreed conceptually with the Alchian and Demsetz’s article.
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