Applied microeconomics has been a neglected area in India, as negligible efforts have been made to test the theories of consumer, producer and firm behaviour. Theory of the Firm is mainly concerned with the interrelationship between size, growth and profitability of firm. The quantitative tests of this interrelationship are largely based on U.S. and U.K. data and the validity of the results for underdeveloped countries like India is debatable as the growth ...
