The maximisation of the rate of financial profit

La maximisation du taux de profit

Louis de Mesnard

Working Papers from HAL

Abstract: On the traditional micro-economic theory, firms are supposed to maximise pure profit. We study what happened when we take into consideration shareholders and the financial profit remunerating the financial capital. We show that it is necessary to surrender the financial profit maximisation to use the rate of financial profit maximisation. The cases of concurrence with fix coefficient of capital, monopoly with fix coefficient of capital, monopoly with variable coefficient of capital are studied, and the role of contraints of rentability are treated. The solutions given by the profit maximisation and by the rate of profit maximisation are compared. We conclude to a reduction of the volume of investissement on some situations, a non automatic clearing of markets and to the necessity to revise some conclusions of industrial, normative and wellfare economics.

Keywords: Internal and EU commerce; Domestic marketing; Consumer affairs; Management economics; Gestion; Economie; Management; Economie industrielle (search for similar items in EconPapers)
Date: 1991
Note: View the original document on HAL open archive server: https://hal.science/hal-01541880v1
References: Add references at CitEc
Citations:

Published in [Rapport de recherche] Institut de mathématiques économiques ( IME). 1991, 21 p

Downloads: (external link)
https://hal.science/hal-01541880v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01541880

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().