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The neoclassical theory of the firm suggests that firms produce outputs by combining inputs that were produced in a market from other individuals and firms.

The neoclassical theory of the firm suggests that firms produce outputs by combining inputs that were produced in a market from other individuals and firms. This is because some other firm will have comparative advantage in producing the input they use. Yet, firms produce some of their own inputs. Explain Ronald Coase's theory for these firms

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