marginal cost

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Related to Marginal costs: Marginal revenue, Opportunity costs

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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However, goods produced at nearly zero marginal cost have long been supplied profitably and rationed through markets more efficiently than they could have been without markets.
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.
Our case applications show that the first-stage (RA-based) estimates of suppliers' marginal costs are already closer to those made by the suppliers than the corresponding estimates based on DEA.
The fact that Firm 1 has only one marginal cost leads to the product quantity [q.
The factor a, which depends on the fuel price among other things, determines the relative marginal costs at which this discontinuity occurs.
Oil bulls will argue that marginal costs put a natural floor under the market at $90-100 per barrel for Brent (and a little lower for WTI) and help re-establish the case for taking a positive view for the market in the short to medium term.
This choice follows Gali and Gertler's (1999) observation that the sticky-price models used to derive NKPC imply that the correct driving variable for inflation is real marginal costs, which are well approximated by real average unit labor costs.
To estimate marginal cost in a two sided market, the costs associated with serving both sides of the market have to be tallied.
A substantial amount of work needs to be done before water agencies are even capable of charging prices that are based on the marginal costs of supply.
Section 3 provides empirical evidence from least-squares regressions of inflation on the discounted sum of future marginal costs as well as evidence from a vector autoregression (VAR) on the relative movement of output and inflation in response to a monetary policy shock.
producing at the point where price equals marginal cost.
To correctly model a market, a demand function, a marginal revenue function, and a marginal cost function should be specified.