marginal cost


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marginal cost

An actuarial term referring to the additional cost required to produce an additional unit of benefit (e.g., unit of health outcome).
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April 2015 RBI considering asking banks to link their base rate with marginal cost rather than average cost of funds.
Coase, on the other hand, realized that though the marginal cost of such goods would often be nearly zero, firms likely would find ways to cover the fixed costs, and the resulting efficiency meant it was still better to use market mechanisms.
Valletti & Estache (1998) conclude that first best solution is marginal cost access charges regardless the market structure.
In what follows we show that these commonly available supplier characteristics can be sufficient to reliably reveal the supplier's bidding policy and eventually the underlying marginal cost.
4 shows that it is only optimal to implement lightweighting technology if its marginal cost is less than approximately $9/kg with very expensive efficiency measures and $4/kg with cheap efficiency measures.
Another implication of our results is that governments should use expenditure restraint to rebalance their budgets because it is likely that some expenditure programs cannot generate benefits at the margin that would cover the marginal cost of financing them.
Moreover, the variables entering Equation (6) are not precisely measured by our data; this might hold for the GDP deflator as well as for the two measures of real marginal cost.
Using Calvo-type price adjustment, Woodford (2003) shows that the aggregation of the linearized optimal price adjustment rules for the individual firms yields an expression in current and expected future inflation and a measure of aggregate marginal cost, mc,
With regard to his marginal cost pricing scheme, using TVA as an example, Hotelling predicted that, "Those who are insistent on avoiding a change in the distribution of wealth at all costs will object" (Hotelling 1938, p.
Next we have estimated the inflation adjustment equation both with output gap and real marginal cost as determinant of inflation and find that real marginal cost and not the output gap is driving force of inflation.
The marginal costs of carbon sequestration: Implications of one greenhouse gas mitigation activity.
If the marginal benefit of abatement today falls by more than the reduction in the marginal cost of abatement today, then the net effect of the innovation in question is to increase our estimate of the "reasonable" level of emissions of GHGs today.

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