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A Theory of Return-Seeking Firms
| Content Provider | Scilit |
|---|---|
| Author | Murray, Cameron K. |
| Copyright Year | 2017 |
| Description | Journal: SSRN Electronic Journal We introduce a theory of return-seeking firms to study the differences between this and profit-maximising models. A return-seeking objective takes into account the opportunity cost of each additional resource input to a firm’s production as being a potential capital input choice in an alternative project. We find that firm supply curves cease to exist in perfectly competitive markets, supply curves in general may slope up as well as down, that economies of scale are necessary for production, and that firms always produce on a decreasing portion of their cost curve. |
| Related Links | http://www.uq.edu.au/economics/abstract/497.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=2945791 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.2945791 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2017-04-04 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Return Seeking |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |