ABSTRACT
In Chapter III we discussed an institutional set–up for the firm in which all or some of the owners of the capital resources bore the risks of the enterprise, took the decisions about output, employment, and capital investment, and hired the workers at a money wage rate which was the same for all workers. We now reverse the roles of capitalists and workers and assume that some or all of the workers bear the risks, take the decisions, and hire the capital resources at a single market–determined rate of hire.
