Question: Using what you've learned from your readings, and the lecture on Theory of the Firm I, intuitively explain why firms exist. That is, if competitive

Using what you've learned from your readings, and the lecture on "Theory of the Firm I," intuitively explain why firms exist. That is, if competitive markets can rely on a well-functioning price system to efficiently allocate goods and services, and not need any centralized planning, why do firms arise? (Remember Coase and "The Nature of the Firm")

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