Naslov
On the closed-form solution of the monopolist's long-run profit maximization problem

Autori
Lukač, Zrinka ; Krpan, Mira ; Kojić, Vedran

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni

Izvornik
Book of Abstracts, 19th International Conference on Operational Research KOI 2022 / Mijač, Tea ; Šestanović, Tea - Split, 2022, 26-26

Skup
19th International Conference on Operational Research (KOI 2022)

Mjesto i datum
Šibenik, Hrvatska, 28.09.2022. - 30.09.2022

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
monopoly ; long-run profit maximization ; Cobb-Douglas technology ; linear demand function

Sažetak
This paper analyses the monopolist's long-run profit maximization problem in the case of the linear demand and Cobb-Douglas production functions with two inputs from an economic perspective. Whenever the problem has a unique solution, its closed-form defines well the profit function for the given demand function. The closed-form solution of the problem is conditioned by returns to scale. The problem has a unique solution for the decreasing returns to scale in which closed-form cannot be found generally. In contrast, for the constant returns to scale, the closed-form of the unique solution arises straightforwardly. However, in the case of the increasing returns to scale, further analysis is needed. The problem is enriched with economic interpretations and numerical illustrations.

Izvorni jezik
Engleski

Znanstvena područja
Matematika, Ekonomija

POVEZANOST RADA