Question

Explain critically baumol's sales maximization model ( static and advertisement model )

Answer 1

Answer:

Baumol in his book Business Behaviour, Value and Growth (1967) has presented a managerial theory of the firm based on sales maximisation. He discusses two models of sales maximisation: a static model and a dynamic model. We shall analyse only his static model of sales maximisation with its variants of single product model without advertisement.