A production process in a firm acting as a monopoly is described by a one- variable production function of a form:

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f(x(t)) = x (t) 0.25 The price of a product manufactured by this monopoly changes according to a function of a form: p(y(t)) = y(t) d (t) 0.5 and a production factor price changes in the following way: c(x (t)) = C(t)x(t), where C (t) > 0 Vt. = In periods t 0, 1, 2, .., 20 a value of a(t), a value of C(t) and the fixed production cost change according to following equations: a(t) = 30.lt +3, C(t) = 3-0.1t (-0.006t +0.1t+3)t 480 0.98- Using the dynamic approach: where a(t) > 0 Vt, + 30 +1.