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https://doi.org/10.1515/bsrj-2016-0012

Pseudoproduction, Pseudocost and Profit Functions in Monopoly from the Dual Perspective

Ilko Vrankić ; Faculty of Economics and Business, University of Zagreb, Croatia
Mira Krpan ; Faculty of Economics and Business, University of Zagreb, Croatia

Puni tekst: engleski, pdf (277 KB) str. 49-64 preuzimanja: 334* citiraj
APA 6th Edition
Vrankić, I. i Krpan, M. (2016). Pseudoproduction, Pseudocost and Profit Functions in Monopoly from the Dual Perspective. Business Systems Research, 7 (2), 49-64. https://doi.org/10.1515/bsrj-2016-0012
MLA 8th Edition
Vrankić, Ilko i Mira Krpan. "Pseudoproduction, Pseudocost and Profit Functions in Monopoly from the Dual Perspective." Business Systems Research, vol. 7, br. 2, 2016, str. 49-64. https://doi.org/10.1515/bsrj-2016-0012. Citirano 27.07.2021.
Chicago 17th Edition
Vrankić, Ilko i Mira Krpan. "Pseudoproduction, Pseudocost and Profit Functions in Monopoly from the Dual Perspective." Business Systems Research 7, br. 2 (2016): 49-64. https://doi.org/10.1515/bsrj-2016-0012
Harvard
Vrankić, I., i Krpan, M. (2016). 'Pseudoproduction, Pseudocost and Profit Functions in Monopoly from the Dual Perspective', Business Systems Research, 7(2), str. 49-64. https://doi.org/10.1515/bsrj-2016-0012
Vancouver
Vrankić I, Krpan M. Pseudoproduction, Pseudocost and Profit Functions in Monopoly from the Dual Perspective. Business Systems Research [Internet]. 2016 [pristupljeno 27.07.2021.];7(2):49-64. https://doi.org/10.1515/bsrj-2016-0012
IEEE
I. Vrankić i M. Krpan, "Pseudoproduction, Pseudocost and Profit Functions in Monopoly from the Dual Perspective", Business Systems Research, vol.7, br. 2, str. 49-64, 2016. [Online]. https://doi.org/10.1515/bsrj-2016-0012

Sažetak
Background: Duality in the microeconomic theory enables us to represent consumers’ preferences and production technology with various dual functions satisfying certain regularity conditions. Objectives: Since the basis for the application of duality in the microeconomic theory is the price taking behaviour, this paper takes the challenge of applying principles of duality to a monopolistic case where a single producer has an influence on the price which it charges for its product. Methods/Approach: The standard approach of deriving the profit function for the monopolist from the production function and the defined pseudoproduction function is accompanied by an alternative approach in which the starting point is the pseudocost function. Starting from the derived profit function, the pseudoproduction function and the pseudocost functions are recovered and a version of Hotelling’s lemma is given. Results: The structure of the profit maximization problem in a monopolistic case was made similar to the structure of the profit maximization problem in the perfectly competitive case and it is shown that all starting functions can be recovered back from derived functions. A version of Hotelling’s lemma is illustrated, which brings us indirectly from the profit function to the supply function. Conclusions: By introducing the pseudoproduction function in the profit maximization model of a monopolist, the structure of the problem becomes similar to the perfectly competitive case and duality results can be applied. The profit function is derived from the pseudoproduction and the pseudocost function, and all starting functions are recovered back from the derived profit function.

Ključne riječi
duality; pseudoproduction function; pseudocost function; profit function; Hotelling’s lemma

Hrčak ID: 166324

URI
https://hrcak.srce.hr/166324

Posjeta: 545 *