ABSTRACT
A business enterprise's decision-making structure consists of quasi-authoritarian, formalized hierarchical structures that establish the basic line of authority and primary responsibilities, underpinned by organized activities within the structure responsible for supporting and/or making particular decisions, and by working rules and routines or institutional patterns of activity. The business enterprise produces an array of outputs–that is, goods and services–which are organized around a set of core product lines. The heterodox theory of production and costs of an enterprise's product line fills this gap by developing the theoretical 'micro' foundations of the industry production coefficients that consist of a product-based input-output structure, an explanation of the movements of production coefficients, and finally an explanation of average and incremental cost curves. Heterodox theory also differs from neoclassical theory on the particulars. Although fundamentally different at the theoretical level, heterodox and neoclassical production and cost theory are similarly organized.
