... of the firm at the decision point in question be 0 2 0. Then by investing a /(I+@) of equity capital in the firm, the individual 1 obtains the benefit of (1 + Q)al/(l+Q) = al invested ... theory of the firm. The point of view, therefore, is essentially pre- scriptive, placing the study in the domain of normative decision theor) In this chapter, the various components of the economic ... 0. The optimal consumption strategies turn out to be linear and in- creasing in wealth and in the present value of the non-capital income stream. In three of the four models studied, the...