ABSTRACT
This chapter deals with the causal process through which the business enterprise sets prices, and the properties of going concern prices; the outcome is a substantive theory of pricing, which is equivalent to and substitute for the mainstream marginalist analysis of pricing. It also deals with investment decisions and decisions regarding wage rates, employment, and output. Long-range planning is a structural activity assisting decision-making. Long-range planning is a type of planning for periods in excess of one year, which encompasses all functional areas of the business. The following are the internal conditions to an enterprise necessitating the development of long-range planning: Trend to industrial decentralization, Enterprise growth and complexity, Internal dissatisfaction with decentralized units and enterprise profit margins, Competitive elements, Production techniques and Trade union influence. The chapter concludes with the delineation of the 'formal' theory of the going, acting business enterprise that is based upon the substantive theories of production, costs, pricing, investment, employment, output, and wage rates.
