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The countries which are not included into any hierarchical organisation, but thus
Each of them carries out the small role precisely co-ordinated with
Activity of others. The problem could not be carried out with the same reliability, with
What it occurs in a capitalist economy if the markets were not
The joint purposes, to distribution between many experts of work on
To achievement of these purposes and to maintenance of the stimulus remunerating for performance
At a choice between the market and hierarchy as means of the organisation economic
Activity needs to consider two aspects. As to firms, in which usually
See the basic units of an economic life some of them are organised
Hierarchically, others - are not present. The second aspect concerns economy as a whole: on
To be organised hierarchically or it or in any combination.
As a variety of forms and the sizes of firms is great, number of possible variants
Combinations of hierarchical and market ways of the organisation practically
Those who underline efficiency of the organisation of economy through the markets, in
The validity mean something it, than the simple statement that
At times the less than organisation, the better. In practice they assert that at
Some circumstances the markets provide more effective coordination
Efforts of set of people, than command systems (if to measure efficiency by that,
As manufacture satisfies requirements of participants and is how much economical at
It resources) are used. In favour of the superiority of the market organisation usually
Put forward also that argument that the market remunerates and punishes more strongly and
The organisations are stronger pressure in favour of achievement of the best results. Such
In the image, distinction between the market and hierarchical organisation is not a question
About it or smaller organisation and by some criteria the market
Represents more effective form of the organisation.
Hierarchy and the market - not unique ways to induce people to cooperation
For achievement of overall aims. The manorialnaja system was the third form
The economy organisations. It was used for submission of the economic
Aspects of a rural life to political and military aspects of feudal system.
Like modern economic systems of the West, it switched on the hierarchical
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