Optimal profit and transaction costs for a production function with variable elasticity of output with resources

Abstract

The published article examines the influence of non-production (transactional) costs of a multifactorial manufacturing enterprise on the formation of its profit. An economic-mathematical model for calculating the profit of an enterprise is proposed, the production function of which takes into account changes in the values of elasticity for each resource, and production (transformation) and non-production (transactional) costs are also described by an exponential function. The features of the formation of profit volumes in the short-term and long-term periods of the enterprise's work are studied. A variant of the calculation model of the maximum possible profit, ignoring the role of transaction costs, and a variant of the calculation model of optimal profit, taking into account the influence of transaction costs, are obtained. The source of transaction costs is the costs of market transactions, for the implementation of which it is necessary to find a subject interested in concluding a transaction, conduct preliminary negotiations with him, prepare a contract and conditions for its implementation, etc. The resources and costs required for all this are the essence of the transaction costs of concluding a deal. It is shown that when calculating the volume of emerging profit, it is necessary to maximize not only the profit function itself, but also the transaction utility function. Numerical analysis of the results of calculations shows the unattainability of the maximum possible values of profit, since in practice the management of the enterprise maximizes not the profit itself, but its utility, expressed as the corresponding transactional function.