Theory on the Functions of a Firm: A Resolution to Smith¡¯s Dilemma

Zhong-Yuan Han and Shu-Lin Wang

Journal of Management and Strategy, 2012, vol. 3, issue 1, 18-31

Abstract: Based on Stigler¡¯s (1951) conjecture, this article reproves the Smith theorem (the division of labor is limited by the extent of the market), via a framework of perfect competitive market, consequently offering a solution to Smith¡¯s dilemma which usually refers to the incompatibility between the Smith theorem and the theory of competitive price.

Keywords: Smith¡¯s dilemma; Functions of the firm; Division of labor; Extent of the market (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/jms/article/view/757/364 (application/pdf)
http://www.sciedu.ca/journal/index.php/jms/article/view/757 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:jms111:v:3:y:2012:i:1:p:18-31

Access Statistics for this article

Journal of Management and Strategy is currently edited by Jenny Zhang

More articles in Journal of Management and Strategy from Journal of Management and Strategy, Sciedu Press
Bibliographic data for series maintained by Jenny Zhang ().