The approach which has just been sketched would appear
to offer an advantage in that it is possible to give a scientific
meaning to what is meant by saying that a firm gets larger
or smaller. A firm becomes larger as additional transactions
(which could he exchange transactions coordinated through
the price mechanism) are organised by the entrepreneur
and becomes smaller as he abandons the organisation of
such transactions. The question which arises is whether
it is possible to study the forces which determine the size
of the iirrn,