This paper is an attempt to grasp and model the problem of optimal strategy of a firm under conditions of unremitting increase of returns to scale and multiple threats of firm's downfall. The firm in our model has to pay high fixed costs to enter the market and its marginal costs are...

This paper suggests a generalized microeconomic criterion of producer which consists in minimizing the danger of firms exit. In the special case, when firm is threatened only by an insufficient profit, this criterion becomes the standard criterion of profit maximization. Six models (three with...