Economists have been scratching their heads over that contradiction for generations. https://en.wikipedia.org/wiki/Theory_of_the_firm https://en.wikipedia.org/

Economists have been scratching their heads over that contradiction for generations. https://en.wikipedia.org/wiki/Theory_of_the_firm https://en.wikipedia.org/wiki/Theory_of_the_firm I think a fair summary is to say that there must be some value in having thousands of people who start each day with some vague idea of what the organization needs from them. And this value must be huge, because it has to outweigh all the value destroyed by corporate inertia, dead weight, infighting, etc. If it doesn't, the firm can't survive very long.