Why, according to Gaus, does the hierarchical firm exist? Question 6 options: Democratic governments tend to oppose the communist aspirations of worker owned firms and so regulatory action typically favors the hierarchical firm. It is an efficient way to organize certain aspects of economic production. Human equality is a myth and so in competitive markets natural hierarchies are re-expressed. Workers have little bargaining power, and so must accept hierarchical employment structures if this is what the owners of capital offer