Abstract
In a recent paper of this JOURNAL, Hey (I98I) addressed the problem of a unified theory which treats three types of firms, a profit-maximising firm (henceforth PMF), a labour-managed firm (henceforth LMF), and a joint-stock firm (henceforth JSF), by one framework. On the basis of his unified theory he concluded that, with respect to the behaviour of the LMF and the JSF, the results can be deduced from those of the PMF. The purpose of this comment is to point out that his argument in the long run about the behaviour of these three firms does not hold if their production functions are homogeneous. We use the same notation as Hey. To begin with, the objective functions of the PMF, the LMF, and the JSF under certainty are defined respectively as follows:
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