The LeChatelier principle, in the form introduced into economics by Paul A. Samuelson, asserts that, at a point of long-run equilibrium, the derivative of long-run compensated demand with respect to own price is larger in magnitude than the derivative of short-run compensated demand. The authors...

The authors explore the current state of the theory of the firm, with attention to its historical origins. Answers to the crucial theoretical question of why an organization c ontrolled by a central authority cannot always duplicate the performa nce of a decentralized organization are presented....