1. The author thinks that it is necessary to examine the economic system before discussing the definition of enterprise. Therefore, the author quoted Sir Arthur salter's description of the economic system: "The daily operation of a normal economic system is not controlled by the central government, and it does not need central supervision. As far as the whole field of human activities and human needs is concerned, supply is regulated according to demand, and production is regulated according to consumption. This process is automatic, flexible and responsive. "

The author also points out that the purpose of writing this article is to build a bridge between the hypothesis that resource allocation is determined by price mechanism and that resource allocation depends on entrepreneurs as coordinators, and to explain how we choose the two in reality and what are the influencing factors.

2. First of all, the author denies two hypotheses, that is, the emergence of enterprises is because some people want to dominate others, and buyers prefer the goods produced by enterprises to those produced in other ways. Therefore, it is pointed out that the main factor of establishing enterprises is the cost of using price mechanism. The emergence of enterprises can reduce the cost of market operation to a certain extent.

3. The reasons for the emergence of enterprises are clarified, and the author focuses on the scale of enterprises. The scale and benefit of an enterprise are directly related, and economists at that time also realized this. However, due to many uncertain factors, economists at that time thought it was almost impossible to scientifically analyze and predict the scale of enterprises.