The rationality and evolution of the firm in the modern economic theory

The paper explores the use of the concept of rationality in economic theory.The concept of rationality underlies the theory of consumer behavior and the traditional theory of the firm in the mainstream economy. Based on the analysis of educational literature and real business prac- tice, inconsistencies in the theoretical positions of microeconomics of our time are shown. The combination of irrational and rational in the behavior of the modern consumer is justified. The author examines the situation of profit maximization as the goal of development of the company in the traditional theory of the firm. The uncertainty and complexity of the business environment, the presence of the company's other development goals, in addition to maximizing profits, leads to irrational behavior of modern firms. It is proved that none of the three prerequisites on which the traditional theory of a firm is based in the real economy work. The evolution of modern firms has caused the emergence of alternative theories of the firm. Among them are the management theories of the firm and the behavioral theory of the firm. We consider the riskiness of the busi- ness as a factor influencing the decision-making in the company. The article criticizes the provi- sion on the need for the firm to establish the equality MC = MR. The author justifies the expedi- ency of the transition of managers from vertical career development in accordance with tradi- tional theory to horizontal development in accordance with modern alternative theories of the firm. The results of the study allow us to conclude that there are two reasons for deepening the gap between educational literature on economics and real business practice.