Timeline for Marginal cost given (Cobb-Douglas) production

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Dec 13, 2020 at 18:01	comment	added	user31331		@Dayne but why does the marginal cost which I have derived only depend on the variables $w_1,w_2$ and not the production function?
Dec 13, 2020 at 17:28	comment	added	Dayne		No it has to do with the production function. For example if $\alpha +\beta <1$, MC will be increasing in $y$. In fact, since there is some input which cannot be changed, in the short term $\alpha +\beta <1$ is a fair assumption and thus generally we assume MC as increasing in short run
Dec 13, 2020 at 16:59	comment	added	user31331		@Dayne why does MC not depend on $y$? Does it have to do with $AC$?
Dec 13, 2020 at 16:49	comment	added	user31331		ohh okay. So simplify, take the derivative with respect to y
Dec 13, 2020 at 14:59	answer	added	Jesper Hybel		timeline score: 4
Dec 13, 2020 at 2:37	comment	added	Dayne		Just substitute $\alpha + \beta=1$ and you'll see that $C=ay$, where $a$ is a term that depends only on $w_1, w_2, \alpha$. So the marginal cost $C^\prime(q)$ is just $a$.
Dec 13, 2020 at 1:04	history	asked	user31331	CC BY-SA 4.0