According to Ronald Coase,firms emerge when _____

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According to Ronald Coase, firms emerge when transaction costs in the market are more than the cost of hierarchical control. This means that firms arise when it is more efficient to conduct business within an organization than through the market. This is because the costs of negotiating, contracting and enforcing agreements in the market are higher than the costs of coordinating activities within an organization.

According to Ronald Coase,firms Emerge When _____