A firm consist of the system of relationships which comes into existence when the direction of resources is dependent on an entrepreneur.
If you torture the data enough, nature will always confess.
Transaction costs were used in the one case to show that if they are not included in the analysis, the firm has no purpose, while in the other I showed, as I thought, that if transaction costs were not introduced into the analysis, for the range of problems considered, the law had no purpose.