TJHERE seem to be three main points raised by Professor Lawriwsky's note, one theoretical and the others empirical: first, the utility functions of firms, whether OC or MC, must have more than one argument in order to be realistic; second, the results obtained are guaranteed because of the correla- tion between VR and profitability; third, the comparison between MC* and OC should be replaced by the comparison of MC* with OC' (where an asterisk denotes companies that are able to evade the discipline exercised by the market for corporate control). I will reply to each in turn