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Here...production...costs...OC...are...assumed...independent...of...advertising...costsExplanation:...Baumols...findings...of...oligopoly...firms...in...America...reveal...that...they...follow...the...sales...maximisation...objective14..Point..E..in..the..figure..represents..the..point..of..tangency..of..iso..present..value..curve..to..the..growth..curve..Another....weakness....of....this....model....is....that....it....ignores....the....interdependence....of....the....prices....of....oligopolistic....firmsThe..firm..is..oligopolistic..whose..cost..cures..are..U-shaped..and..the..demand..curve..is..downward..sloping..Managerial..constraints..arise..due..to:..-Limit..to..managers..ability..to..manage..and..achieve..optimum..efficiency..-managers..own..job..security....Financial..constraints..arise..due..to:..-..Conflict..between..managers..own..utility..function..and..owners..utility..function..-..Um=f(salary,..power,..job..security,..status)..-..Uo=f(profit,..capital,..output,..market..share,..public..reputation)..-..However..he..claims..that..the..two..utility..functions..converge..into..one..variable..that..study..growth..in..the..size..of..firmAccording...to...Shepherd,...under...oligopoly...a...firm...faces...a...kinked...demand...curve...and...if...the...kink...is...large...enough,...total...revenue...and...profits...would...be...the...maximum...at...the...same...level...of...outputAbout..this..chapter..Cite..this..chapter..as:..Koutsoyiannis..AModern....Microeconomics....pp....325-351........Cite....asBaumols....Theory....of....Sales....Revenue....MaximisationAuthorsAuthors....and....affiliationsA.KoutsoyiannisChapter....2....Downloads....AbstractWThus....it....is....very....difficult....to....choose....the....sales....maximisation....and....minimum....profit....constraint....in....Baumols....model

If..you..wish..to..download..it,..please..recommend..it..to..your..friends..in..any..social..systemPresentation....is....loadingImplications..(or..Superiority)..of..the..Theory:..Baumols..sales..maximisation..theory..has..some..important..implications..which..make..it..superior..to..the..profit..maximisation..model..of..the..firmBefore....publishing....your....articles....on....this....site,....please....read....the....following....pages:1This....is....explained....in....Figure....77....If....minimum....profit....constraint....is....represented....by....line....MPIf....minimum....profit....constraint....is....represented....by....line....MP....ADVERTISEMENTS:....3 87c6bb4a5b

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September 2018