The optimal cost function of the firm to prevent industrial risks

The problem of determining the cost function of the firm to prevent industrial risks (voluntary risk costs), the optimal by the criterion of total costs. For the exponential function of production costs and exponentially decreasing functions of the industrial damage is determined as a function of voluntary risk costs. The analysis of influence of parameters of the function of industrial damage to the area of existence of the solution of the profit maximization problem of the firm under optimal functions of voluntary risk costs. Produced by testing the theoretical results on numerical examples, provides a graphic illustration of simulation results. Analyzed the impact of the market price of commodities, production costs of firms in the voluntary risk costs. The resulting model allows for each case, describing the production process of the enterprise, to establish the boundaries of market prices and parameters of the cost function, in which the management of industrial risk is critical for the existence of the company.