The major instrument of microeconomic theory, the present theory of the firm, cannot taken seriously by the prudent scholar of business. If one accepts entrepreneurship for what it is, then clearly there is no manner in which the traditional theory of the firm can integrate its precepts and remain even remotely intact. The theory of allocation of scarce resources is also called into question. Economists argue that the allocation process is the result of market forces that are able to determine which resources are to be used most expeditiously in the production process. Demand calculations are seen as necessary to allocating resources are not adequate to explain economic growth. That is , the growth of an economy comes about as there is commensurate growth in the resources themselves. On the other hand, as Kirzner points out, “As soon as the economics of growth becomes correctly viewed as being in large part the economics of entrepreneurial discovery, it becomes difficult to see the processes of short-run allocation as anything but special cases of the more general discovery processes that constitute economic growth.”