Companies’ Decisions for Profit Maximization: A Structural Model
Author(s)
Cerqueti, Roy
Rotundo, Giulia
Date Issued
2009
Type
Article
Abstract
Huge analyses on firms data selected from public available databases
accomplished the task to describe the size and growth of firms through
interpolating functions. The structure and internal firms organization
that lead to the optimal profit is a main matter of business studies
and must take carefully into account internal work distribution and
the subsequent productivity. Moreover factors external to firms, like
as the evolution of markets and the availability of new technologies
show their immediate bias on the wealth of the firms. In this paper
a model is developed for a set of firms producing a single commodity.
The shape of the productivity that leads to profit optimization is drawn
and discussed. Furthermore the optimal time for the firm to renew
its technology is established and consequences on the productivity are
examined.
Citation
Cerqueti R., Rotundo G. 2009. Companies’ Decisions for Profit Maximization: A Structural Model. "Applied Mathematical Sciences" 3(25-28): 1327-1340.
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