Chapter

The Rate of Growth of a Firm through Time

Edith Penrose

in The Theory of the Growth of the Firm

Third edition

Published in print September 1995 | ISBN: 9780198289777
Published online November 2003 | e-ISBN: 9780191596759 | DOI: http://dx.doi.org/10.1093/0198289774.003.0009
 The Rate of Growth of a Firm through Time

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This chapter examines the factors causing changes in the rate of growth of firms as they become larger. The firm reaches a point at which its rate of growth tends to decline, its absolute size continuous to increase, and there is no reason to believe that some increase in size will ever become impossible. The limit to size is set by the administrative criteria used to decide whether or not a given collection of economic activities constitutes a business firm instead of an investment holding company or financial ‘community of interest’.

Keywords: firms; growth; expansion

Chapter.  8227 words. 

Subjects: Microeconomics

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