IDEAS home Printed from https://ideas.repec.org/p/osf/osfxxx/hzmga_v1.html
   My bibliography  Save this paper

A Theory of Return-Seeking Firms

Author

Listed:
  • Murray, Cameron

    (The University of Sydney)

  • Markey-Towler, Brendan

Abstract

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.

Suggested Citation

  • Murray, Cameron & Markey-Towler, Brendan, 2019. "A Theory of Return-Seeking Firms," OSF Preprints hzmga_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:hzmga_v1
    DOI: 10.31219/osf.io/hzmga_v1
    as

    Download full text from publisher

    File URL: https://osf.io/download/5f6015c51e8b9c01e1e97d9c/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/hzmga_v1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:osfxxx:hzmga_v1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://osf.io/preprints/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.