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Business
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| Number of pages / Number of words: |
4 / 1098 |
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In 1959, Penrose presented that the firm is subject relate not to absolute size but to the rate of growth. The study has revealed that the growth of firms through time requires a dynamic setting.
The critique of static equilibrium is reinforced by a forth objection: the traditional theory’s inability to come to terms with oligopoly...
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An essential assumption of the traditional theory is the information about the environment in which the firms operate and the behaviour of other firms must be given. This assumption only satisfies the firms in PC and Monopoly. On the hand, the oligopoly consists the interdependence between the behaviour of the firms therefore the action of firm changes the environment confronting every other firm...
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