Vanek(1970,ch.6) shows that a LMF can be expected to spend less on advertising and sales promotion than does a similar CF. But, Meade(1972) points out, since a LMF tends to operate on a smaller scale than a comparable CF, the more interesting question would be whether a LMF spends less on advertising per unit of output. This proof is contained in Steinherr (1975b) under slightly restrictive assumptions. First, it is assumed that the LMF and the CF are identical in all respects with the exception of their advertising and labour allocations for the sake of making the two cases comparable, Second, the elasticity of demand for the output of the firm must exceed one. While the first assumption is, of course, restrictive, firms of both types being usually different in many dimensions, the second assumption is rather mild.