A firm may be defined as an institution which buys things, transforms them in some way, and then sells them with the purpose of making a profit. The … - Kenneth E. Boulding
" "A firm may be defined as an institution which buys things, transforms them in some way, and then sells them with the purpose of making a profit. The things a firm buys we shall call "inputs." The things it sells we shall call "outputs." The process whereby the things it buys are transformed into the things it sells we shall call the "process of production." In any process of buying to sell again a process of production is always involved...
About Kenneth E. Boulding
Kenneth Ewart Boulding (18 January 1910 – 18 March 1993) was an economist, educator, poet, religious mystic, devoted Quaker, systems scientist and interdisciplinary philosopher. He was cofounder of General Systems Theory and founder of numerous ongoing intellectual projects in economics and social science. He was married to .
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Additional quotes by Kenneth E. Boulding
There is a kind of second law of cultural dynamics which states simply that when anything has been done, it cannot be done again. In other words, we start off any system with a potential for novelty which is gradually exhausted. We see this in every field of human life, in the arts as well as the sciences. Once Beethoven has written the Ninth Symphony, nobody else can do it. Consequently, we find that in any evolutionary process, even in the arts, the search for novelty becomes corrupting. The "entropy trap" is perhaps the most subtle and the most fundamental of the obstacles toward realising the developed society...
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Prediction of the future is possible only in systems that have stable parameters like celestial mechanics. The only reason why prediction is so successful in celestial mechanics is that the evolution of the solar system has ground to a halt in what is essentially a dynamic equilibrium with stable parameters. Evolutionary systems, however, by their very nature have unstable parameters. They are disequilibrium systems and in such systems our power of prediction, though not zero, is very limited because of the unpredictability of the parameters themselves. If, of course, it were possible to predict the change in the parameters, then there would be other parameters which were unchanged, but the search for ultimately stable parameters in evolutionary systems is futile, for they probably do not exist... Social systems have Heisenberg principles all over the place, for we cannot predict the future without changing it.