| Article ID: | iaor19911328 |
| Country: | Netherlands |
| Volume: | 19 |
| Issue: | 1/3 |
| Start Page Number: | 189 |
| End Page Number: | 195 |
| Publication Date: | May 1990 |
| Journal: | Engineering Costs and Production Economics |
| Authors: | Abel I., Bonin J.P. |
Employment in the dividend-maximizing firm responds inversely to an increase in product price. The inclusion of inventories with the corresponding adjustments in dividend renders this response ambiguous. When inventories are included, the response to an increase in fixed cost becomes less pronounced.