Synopsis Applied microeconomics has been a neglected area in India, as negligible efforts have been made to test the theories of consumer, producer and firm behaviour. Theory of the Firm is mainly concerned with the interrelationship between size, growth and profitability of firm. The quantitative tests of this interrelationship are largely based on U.S. and U.K. data and the validity of the results for underdeveloped countries like India is debatable as the growth performance of firms depends upon the structural features of the economies. The book addresses itself to explore the interrelationship in case of Indian firms and the results are at variance to some extent. The empirical results, findings and conclusions derived in the book will be of immense use to research scholars, students of economics and commerce and those interested in Indian economy. The book will also be useful to owners and managers of the firms, who plan for increase in size, growth rate and profitability of firms.