| Economics of the Enterprise vs. Economics of the Firm |
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Authors: Yevgeny P. DYATEL Dr. Sc. (Econ.), Professor, Head of Economic Theory and Economic Policy Dept. Abstract: The paper is aimed to solve the problem of delimiting and synthesis of the basic concepts of two interrelated disciplines – economics of the enterprise and economics of the firm. The methodology to examine their conceptual framework is introduced. The similarity and distinction between the terms "resource" and "asset", rent and profit, inframarginal rent and producer surplus are discussed. The author analyses the genesis, formation and development of an enterprise (firm) through studying its evolution from general conditions of economic activity to specific economic forms, the particularities of which are predetermined by achieving: 1) physical indicators (expected results and technologies) of an enterprise; 2) cost indicators of revenues and expenses of a commercial enterprise; 3) economic profit or other socio-economic indicators optimized by a firm. Such an approach helps shape a general idea about fundamental categories applied in educational and academic disciplines "economics of the enterprise" and "economics of the firm". Keywords: ENTERPRISE, FIRM, ECONOMIC (INFRAMARGINAL) RENT, NORMAL PROFIT, ECONOMIC PROFIT For citation: Yevgeny P. Dyatel. Economics of the Enterprise vs. Economics of the Firm. Upravlenets – The Manager, 2016, no. 5(63), pp. 16–21. |
