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An endogenous growth model of the revenue maximizing firm is here presented. It is demonstrated that, in a static analysis, a revenue maximizing firm in equilibrium equates the average product of labor to the wage rate. In a dynamic analysis, the maximization rule becomes the balance between the rate of marginal substitution -between labor and capital -and the ratio of the wage rate over the discount rate. When the firm satisfies this rule, it grows endogenously at the rate of return ondoi:10.4236/jssm.2008.12019 fatcat:lecc2hjs35ajlazj6ly4zoow2a