Economic and political developments have forced upon us a great problem of analysis in the field of politico-economic organization. The center of thi… - Gardiner Means

The Modern Corporation has undermined the preconceptions of classic economic theory as effectively as the quantum undermined classic physics at the beginning of the 20th century.

Earlier writers have recognized that economic activity is only in part trading and that the element of administration enters in, but they have tended to minimize this administrative aspect. The modern corporation has not only increased this aspect by bringing a greater part of economic activity within the administrative limits of single units, has altered the character of the market by making price not an outgrowth of trading but of administration.

In traditional economic writings dealing with the economy as a whole, it is usually assumed that prices are highly flexible and that economic adjustment is brought about through price changes. We are going to examine inflexible prices.