Baumol’s Sales or Revenue Maximisation (With Diagram)
The below mentioned article provides an overview on Baumol’s Sales or Revenue Maximisation. Prof. Baumol in his book Business Behaviour, Value and Growth (1967) has presented a managerial theory of the firm based on sales maximisation. He discusses two models of sales maximisation: a static model and a dynamic model. We shall analyse only his static model of sales maximisation [...]