Comment Comment by bdunbar (As transaction costs (search costs, costs to contract, costs to outsource, etc.) go down, optimal firm size goes down.Optimal size will still depend on the industry.Seventy guys can operate a dropbox.You'll need a few thousand guys, minimum, to run a shipyard, assemble tractors, extract oil.Doesn't mean they are inefficient - just that some tasks require a lot of capitol and manpower. parent bdunbar 14 years ago
Optimal size will still depend on the industry.
Seventy guys can operate a dropbox.
You'll need a few thousand guys, minimum, to run a shipyard, assemble tractors, extract oil.
Doesn't mean they are inefficient - just that some tasks require a lot of capitol and manpower.