Baumol’s Sales Maximisation Hypothesis | Firm | Economics

W.J. Baumol examines what happens if the firm adopts an alter­native objective—the maximisation of the value of its sales (total revenue) under the requirement that the firm's profits should not fall below a mini­mum acceptable level. Sales maximisation implies maximisation of total revenue not obtaining the largest possible physical volume, because at a zero price physical value may be infinite [...]