Why do firms exist ?

This is a very interesting and critical question. If as theorized, and as suggested, the markets work efficiently and effectively there will be no need for firms. Nevertheless, firms exist!!!

Thus, I would like for you to research the question and figure out the reasons for the existence of firms.

To do that:

1-Analyze systematically and thoroughly the assumptions made about firms by the various schools of economic thought.

Some of these schools are: I-The Classical School II-The Neoclassical School III-The Institutional School IV-The Austrian School V-The Behavioral School VI-...etc.

2- Analyze the statements/points/arguments that you encounter in a Business Law class about the types/variety of firms in existence. That is, I do not want you to discuss the existing Types of Legal Structures for Business:

Sole proprietorship. General partnerships. Limited liability partnership. Limited partnership. Limited liability company. Business corporations.

You will take the above as given, and...you will move beyond the legal viewpoint/analysis.

3 - Analyze systematically and thoroughly the economic, behavioral, institutional, evolutionary...etc. factors which contributed to the rise of firms. I will provide guidance and assistance as you proceed with your research.