Including real options in firms ’ value raises numerous difficulties. Limitations concerning the relevance of option pricing models outside financial markets are the most salient, but carrying out a valuation implies other assumptions, especially on firms’ governance. In particular,...

In this paper we consider the problem of the control of access to a firm's productive asset, embedding the relevant decision makers into a general structure of formal authority relations. Within such an authority structure, each decision maker acts as a principal to some decision makers, while...

The article discusses the origins of the U-shaped average cost curve, which is one of the most widely used tools in microeconomic analysis. Its widespread use leads many to consider it as a basic tool, obscuring the fact that the graph of the U-shaped average cost curve is part of a complex...

The paper was based on a systematic review and critical analysis of literature on the theory of firm. The theoretical assumption that forms the base of this paper is based on the importance of knowing the relationship between firms in different market, recognized at economic level. Based on the...

The firm possesses unique resources and capabilities. The firms have different behaviors on the real market. The analysis of firm development in a competitive environment is essential for the reassessment of the business simulation. Starting from these ideas the present paper intends to identify...

The neoclassical theory of the firm deals with the pattern of perfect competition, within which the perfect information available to economic agents provides instant allocation of production factors and access to economic goods. The Austrian School (C. Menger, L. von Mises, Hayek, etc.)...

The article considers evolution of the theory of the firm with respect to identification of the general goal, purpose, necessity and possibility of company management. It affirms a necessity and identifies basic parameters (role, goal, function) of economic management of a company, under which...