This paper provides a generalization of the profit function by relaxing the assumption of price-taking behaviour. The resulting profit-maximization problem is analyzed, and forms of a generalized profit function together with the corresponding generalized cost function and their properties are established under alternative assumptions about the functional form of the (inverse) output demands and input supplies faced by the firm.
Key Words: imperfect competition; non-price-taking behaviour; producer theory.
JEL Classification Numbers: D21, D43, L13.