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is then expanded to take into account mergers and acquisitions. It is essentially an optimistic account that regards large DISECON OMIES OF SCALE as unlikely.<br /><em>See also:</em> managerial models of the firm <br /><em>Reference</em><br />Marris, R. (1964) The Economic Theory of Managerial Capitalism, London: Macmillan.<br /> Penrose, E.T. (1959) The Theory of the Growth of the Firm, Oxford: Basil Blackwell.
classical classical fallacy (J3)<br />The view that CIRCULATING CAPITAL by creating a wage fund improves wages and increases the demand for labour but FIXED CAPITAL does not. SAM U ELSON asserted that this view makes the mistake of identifying the wage fund with the whole of circulating capital and ignores the contribution of fixed capital to the growth of REAL WAGES.<br /><em>Reference</em><br />Samuelson, PA. (1994) 'The Classical Classical Fallacy', Journal of Economic Literature, 32: 620-39.
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<strong>Nonsubsidized loan</strong> – A loan that is not eligible for federal interest benefits. (Note: nonsubsidized loans were offered by some guarantors before the introduction of the unsubsidized Stafford Loan Program.)
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reciprocal demand law (F1)<br />A refinement of the law of coMPARATIVE ADVANTAGE used to determine the TERMS OF TRADE between countries according to the relative demand measured in the amount of goods offered for the goods of another country. John Stuart MILL, in his first essay of his collection Essays on Some Unsettled Questions of Political Economy (1844), and TORRENS refined RICARDIAN international trade theory in this way.
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