The Decision to Invest In Firms

The Decision to Invest In Firms

Introduction

Conventional theories about the firm's investment decision, whether or not neoclassical character, tend to disregard the influence of market structures in determining investment. In fact, the neoclassical theory of investment decision, presented in main manual of macroeconomics, considers an economy in which firms are price takers in the markets for goods and factors of production. In other words, an economy in which perfect competition prevails in all markets.

Most neoclassical economists seem not to express any concern to analyze the possible implications of different types of market structures that based ...