A monopolist that can continuously adjust his nominal price will set the price to equate contemporaneous marginal revenue and
marginal cost and the price will be a markup over
marginal cost.
Where [y.sup.f.sub.t] is the flexible price equilibrium output and [eta] is the output elasticity of real
marginal cost, [Gali and Gertler (1999)].
With these observations in mind, suppose we consider an unexpected innovation that not only reduces a defendant's
marginal costs of abatement but also simultaneously causes us to revise our expectations of future technological progress.
the courts would be required to monitor adherence to
marginal costFor example, suppose the
marginal cost for firm 2 in the asymmetric model is 30 recalling that the
marginal cost for firm 1 is 40.
We estimate key cost parameters using Indonesian plant-level data, and find robust support for the view that exporting firms are operating with increasing
marginal cost technology.
Banks use
marginal cost of funds when there is sufficient liquidity available at that rate to fund a reasonable proportion of the asset portfolio.Aditya PuriMD and CEO, HDFC Bank
Andersson & Ogren (2007) state that in order to achieve a competitive transport sector, infrastructure charges in the European Union should be based on short-run
marginal costs. Freebairn, (1998) assesses
marginal cost, average cost, Ramsey prices and multipart tariff rules for access pricing.
Ananda Bhoumik, senior director, banks, India Ratings, says, "The recommendation that banks compute their lending rate based on their
marginal cost of funds and not on the weighted average cost could increase the volatility of the base rate, particularly for banks with higher dependence on bulk short-term deposits.
We depict this idea in the following way: The bigger the difference between the tax transfer price [q.sup.T] and the
marginal cost c, the bigger the
marginal cost of defending the difference.
In recent work with Severin Borenstein, I use nationally representative data to calculate the distributional impact of a transition to
marginal cost pricing in U.S.