The newer aspects of optimization of market firm strategy in contemporary conditions

Abstract

The authors consider the possibilities of completing market enterprise strategy in two market situations in contemporary conditions of the existence of potential competitors on a perfect monopolistic market, and in the conditions of including elements of the so-called non-price competitions, i.e. the so-called “sales effort” in the model of the long-term balance in monopoly competition. In the first part of the work, alternative strategies of monopolists in case of the appearance of potential competitors are considered: the Sylos model of optimal price to prevent the access of competitors to monopolistic markets and the model of Worcester hypothesis of independent profit maximization in monopoly. The second part presents the model modifications of the long-term profit maximization in the market of differentiated products, i.e. the markets of monopoly competition because of including the so-called promotion costs in the enterprise model of supply optimization.