The Theory of the Revenue Maximizing Firm

  title={The Theory of the Revenue Maximizing Firm},
  author={SciRes and Beniamino Moro},
  • SciRes, Beniamino Moro
  • Published 2008
An endogenous growth model of the revenue maximizing firm is here presented. It is demonstrated that, in a static analysis, a revenue maximizing firm in equilibrium equates the average product of labor to the wage rate. In a dynamic analysis, the maximization rule becomes the balance between the rate of marginal substitution between labor and capital and… CONTINUE READING