Firm Theory

Firm Theory explores why firms exist and how they operate within markets, focusing on how they organize resources, production, and strategies to achieve goals like profit and growth. It examines factors such as minimizing costs, managing information, and reducing transaction uncertainties that influence a company's structure and decisions. Essentially, it seeks to explain the purpose of firms, how they interact with competitors and consumers, and what determines their size, scope, and efficiency in a dynamic economic environment.