MODEL OF PROFITABLE FIRM BEHAVIOR IN MARKET CONDITIONS

Ilya Tsvetanov

Economic Studies journal, 1998, issue 1, 35-56

Abstract: In this research the model of annual production cycle of the economic activity takes central place. The linear straight (operative) production function and the reverse (plan) one are taken out and with their help are analytically determinated the profitable market prices of products, resources and services. The benefit is functionally constructed as a main criterion for profitable firm production activity on the base of the roles and norms in the Law for Economic Activity, Law for Accountancy and National Account¬ancy Plan, Law for Taxation and oth¬ers. In the research are formulated adequate conditions for full and partial production profit regarding: - the prices of products and services and - the prices of labour, technological and material resources which have been consumed. The simplex interpreting of the adequate conditions for full and partial profit is used for formulation of the main arguments and conclusions regarding the boundary values of transformation from the field of full to the field of incomplete and partial price profit and vice versa.

Date: 1998
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