Abstract
There is now a considerable literature on the Illyrian firm (that is, the firm which is assumed to maximise income per worker), and it has been argued that the analysis may have relevance for the labour‐managed or co‐operative enterprise. Significant contributions to this literature have been made by Domar (1966), Vanek (1970), Meade (1972, 1974) and others but the seminal paper is generally recognised to be that of Ward (1958).

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