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Sales-Revenue Maximisation

In: The Theory of the Firm

Author

Listed:
  • P. J. Curwen

Abstract

Baumol1 has put forward the idea that a firm has as its objective the maximisation of sales revenue subject to a profit constraint. He claimed that firms give precedence to the pursuit of maximum sales revenue over the pursuit of maximum profit because managers believe that their salaries, power and standing, both within their own company and within the business community at large, are more closely related to the attainment of the former than the latter objective.

Suggested Citation

  • P. J. Curwen, 1976. "Sales-Revenue Maximisation," Palgrave Macmillan Books, in: The Theory of the Firm, chapter 0, pages 112-117, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-15645-0_16
    DOI: 10.1007/978-1-349-15645-0_16
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