R2

Read "The Nature of the Firm" by Ronald Coase (1937) discussing his views and inquiries on firms exist. Use this paper to discuss how our simplified version of the firm (i.e. the firm as "black box" producing goods: q = f(K, L)) ignores or captures important aspects from the real world. To answer this question and receive full marks, your response should be approximately two paragraphs (and no more than three). Your answer should include an explanation of what Coase means when he discusses entrepreneurs and why they matter for firms. In your answer, be sure to discuss the analysis Coase has of there only being 1 giant firm in a market. Finally, your answer should also discuss why uncertainty may or may not be important.