• Julian Gough
  • Stephen Hill


The role of management is to determine the optimal combinations of decision variables to achieve the firm’s objective(s). A temporal distinction can be made between utilising the firm’s existing resources in an optimal manner and determining the optimal level of such resources. So far we have concentrated on the first set of decisions, although we have in several chapters referred to factors which span a longer time period (e.g. in relation to cost and demand estimation). It is to an explicit examination of the second set of decisions — the choice of an optimal level of resources at the firm’s disposal — that we now turn.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Further reading

  1. C. J. Hawkins and D. W. Pearce, Capital Investment Appraisal (London: Macmillan, 1972).Google Scholar
  2. J. Hirshleifer, ‘On the Theory of Optimal Investment Decision’, Journal of Political Economy, vol. lxvi, no. 4 (Aug 1958) pp. 329–52CrossRefGoogle Scholar
  3. S. H. Archer and C. A. D’Ambrosio (eds), The Theory of Business Finance: A Book of Readings (New York: Macmillan Co., 2nd ed. 1976).Google Scholar
  4. A. J. Merrett and A. Sykes, The Finance and Analysis of Capital Projects (London: Longman, 2nd ed. 1973).Google Scholar
  5. J. Simon, Applied Managerial Economics (Englewood Cliffs, N.J.: Prentice-Hall, 1975) part 5.Google Scholar

Copyright information

© Julian Gough and Stephen Hill 1979

Authors and Affiliations

  • Julian Gough
  • Stephen Hill

There are no affiliations available

Personalised recommendations