SHS Web Conf.
Volume 83, 2020Current Problems of the Corporate Sector 2020
|Number of page(s)||8|
|Section||Economics, Management and Finance|
|Published online||30 October 2020|
Application of optimal control theory on optimal advertising expenditure in monopoly
1 Department of Business Economics, Faculty of Business Management, University of Economics in Bratislava, Dolnozemská st. 1/b, 825 35 Bratislava, Slovakia (EU)
2 Department of Business Economics, Faculty of Business Management, University of Economics in Bratislava, Dolnozemská st. 1/b, 825 35 Bratislava, Slovakia (EU)
* Corresponding author: email@example.com
Presented paper is being focused on Optimal control theory, Variation Calculus and its economic application. Aim of this research paper is to shortly describe Optimal control and Variation Calculus and to present how can we deal with these type of issues. The last part of this paper is presenting possible economic application of Optimal control, based on the maximization of profit in monopoly while introducing new product on the market. Our control variable is the advertising rate, which affects the profit of monopoly through advertising expenditures and as a state variable was the market share defined.
© The Authors, published by EDP Sciences, 2020
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