The ambiguous evidence on the
marginal cost coefficient may be related to weak identification through weak instrumental variables in the GMM estimation.
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.
Firms should always operate in the region of output where short-run
marginal cost is upward-sloping, represented by the dotted lines in the figure.
(7) To minimize the cost of any given level of pollution abatement, the efficient allocation of that abatement among polluters would equalize the
marginal cost of pollution control for all polluters.
where P = price; Q = quantity; MC =
marginal cost; and AC = average
Thus said, it is important to note that textbooks only deal with the quantitative view of
marginal cost. In the power generation industry, as equally important as quantitative
marginal cost is qualitative
marginal cost: the question of what to spend
marginal cost on.
The intuition of (18) will be developed further below (see Equation (24)) but for now notice at the optimum that the marginal value of an R&D dollar (19) is equal to 1 (the
marginal cost of an R&D dollar).
Utilizing a flexible production structure that nests increasing, decreasing, and constant
marginal cost, we derive the appropriate estimating equation from an otherwise standard international trade model.
Lending rates to be set with reference to
marginal cost of funding
But banks say it's easier said than done.In order to improve the efficiency of monetary policy transmission, the RBI will encourage banks to move in a time-bound manner to
marginal cost of funds-based determination of their base rates.
Published estimates by industry sources range from a
marginal cost of $55 or $65 to as much as $75 or $85 per barrel.