Towards a Non-Static Theory of Profit Maximization

Contents: Preface. 1. Theories of the firm. 2. A review of the conceptual specifications. 3. Profit maximization denied. 4. The process of decision making. 5. Business behaviour for long-run profit maximization under the continuity assumption. 6. Minimum goal of the firm and managerial constraints. 7. Extensions of long-run profit maximization. Bibliography. Index.

"This book is an exercise in pure theory at the micro-level. Abandoning the traditional concept of profit, as being the residual difference between revenue and cost, the book examines in detail new concepts of profit and attempts at determining the behaviour of firms (where management and ownership is separated) in terms of these new profit concepts.

The entire gamut of the theories of the firm and the theories of pricing and output determination under different market conditions is examined, to establish how conventional analysis leaves no room for firm’s growth, as the surplus generated by a firm exhausts itself in returns to factor inputs. A general theory of profit is then presented and the relationship between profit and other variables, notably growth is examined, within a firm. An attempt is made to resolve the conflict that may arise in the managerial objectives and the objectives of the firms (in the long-run) where ownership is separate from management."