Effectiveness of Enterprise Economic Management Based on Price Competition
DOI:
https://doi.org/10.54097/ehss.v4i.2861Keywords:
Price Competition; Economic Management; Cost; Profit Maximization; Objective FunctionAbstract
In order to improve the core competitiveness of an enterprise, it must first start with the implementation of cost accounting, and then improve the economic management ability of the enterprise. This paper systematically studies quantity competition and price competition among enterprises. It reveals the influencing factors of how enterprises conduct price competition. Build an objective function that maximizes both profit and output. The difficulty of cooperation and the amount of punishment for poly-oligopoly firms with asymmetric marginal costs are discussed. Finally, this paper verifies the impact of price competition on the cost and profit of enterprises through examples.
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