Multiple choice

In the pricing theory, the concept of 'costing margin' was introduced by

  1. Andrews

  2. Baumol

  3. Cournot

  4. Williamson
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It was only in the 1960s that the neo-classical theory of the firm was seriously challenged by alternatives such as managerial and behavioural theories. Managerial theories of the firm, as developed by William Baumol (1959 and 1962) suggested that managers' interests are best served by maximising sales after achieving a minimum level of profit which satisfies shareholders.

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