Profit-pursuing of Enterprises Based on Market Position Difference Theory

摘要

Traditional Economics has acquainted us with the theory that business should be aimed to obtain the greatest profit, but the Modern Game Theory enlightened us on that enterprises should focus on getting reasonable profit. When the cost is the fixed precondition, an enterprise' profit is no doubt closely related to the market price of its products. It has been widely acknowledged that market price is decided by the law of supply and demand, but the inconsistency with the law is actually often witnessed by the business practices. Therefore, the supply and demand of commodity is not the only but an important factor that determines the market price. Market prices are decided by the market position difference of different products and further the profits of enterprises are decided as well.