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. Boumal's model highlights that the primary objective of a firm is to maximize its sales rather than profit maximization. It states that the goal of a firm is maximization of sales revenue subject to a minimum profit constraint. Prof. Boumal has developed two models: 1st is Static Model and 2nd is Dynamic model The Static Model: This model is based on the following assumptions, 1. The model is applicable to a particular time period and the model does not operate at different periods of time. 2. The firm aims at maximizing its sales revenue subject to a minimum profit constraint. 3. The demand curve of the firm slope downwards from left to right. 4. The average cost curve of the firm is U-shaped one. Dynamic Model: This model explains how changes in advertisement expenditure, a major determinant of demand, would affect the sales revenue of a firm under severe competitions. Few assumptions of this model are, 1. Higher advertisement expenditure would certainly increase sales of a firm. 2. Market price remains constant. 3. Demand and cost curves of the firm are conventional in nature.
What else can I help you with?
Does comcast have static or dynamic ip's?
Dynamic unless you pay extra for a static.
Types of Internet static and dynamic - explain this?
Static: Not Moving Dynamic: Moving
Is wellness a static or dynamic process?
Dynamic process. Static means staying the same.
What is Dynamic static?
static comes from stationary means not moving and dynamic means moving
Is Sodapop a static or dynamic character?
static
Are human rights dynamic or static?
dynamic
What is the antonum of dynamic?
The antonym of dynamic is 'static'.
Is push up dynamic or static?
DYnamic
Who can tell you what is the difference between a Baumol Static Revenue-Maximization Model with a Dynamic one?
The main difference is that in the dynamic model the profit is reinvented allowing for more growth in the future, so it is a trade off between profit now or higher profits later, the management will need to get the shareholder to agree on that, a trust must be established between the shareholders and management. Hence, int he dynamic model, the minimum profit is not actually a constraint as it is in the static model.
What is the difference between static and dynamic fighting?
Static stays the same and dynamic is always different.
Differentiate between static and dynamic systems in linear system analysis?
If a system is static then it will be known as STATIC SYSTEM and if it is not static then its a common sense that it will be a DYNAMIC SYSTEM.
Boumal's static and dynamic models?
Baumol suggested sales revenue maximisation as an alternative goal to profit maximisation. He presented two basic models: A static single–period model and a multi-period dynamic model of growth of sales revenue maximisation. Each model has two versions, one with advertising activities and another without.
