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Indeed Coase undermines the distinction, noting that it is possible to observe firms which encompass market transactions: 'I have come across numerous examples of markets found within firms, but one which amused me was the discovery of a kind of market operating in the heart of a nationalised industry in England . . . An analogous situation may, of course, be found within a privately oened firm in which separate departments . . . supply one another as a result . . . of . . . essentially market transactions between them.

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