# Questions tagged [marginal]

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### Derive the cost function and supply function from production function

I didn't study economics, but am quite interested in the topic. I came to the question whether I could derive the supply curve / marginal cost function from the production function and I actually ...
100 views

### How should I calculate bulk selling price for a small business?

Some friends of mine run a small business, in a small garage-like space, with a few employees, making and selling "plumbuses". The typical customer orders about 5 plumbuses at a time. When I heard ...
2k views

### Supply curve when the marginal cost is zero

The supply curve is built as the average marginal cost (MC), when the MC is equal or higher than the average cost (AC) The marginal cost increases, as a result of the opposite effect of marginal ...
10 views

### How to calculate and interpret a marginal treatment effect (local instrumental variable)? (Intuition through simple example.)

I am working on the intuition behind local instrumental variables (LIV), also known as the marginal treatment effect (MTE). I have worked some time on this and would benefit from solving a simple. I ...
21 views

### Explaining negative “cyclic” unemployment with a production function

First of all, here is a related post. Unfortunately, it does not answer my question. I have heard that there is an understanding of negative unemployment in economic theory. Obviously, absolute ...
138 views

### Vertical Marginal Cost curves

When would a marginal cost curve be vertical? I understand this happens when the marginal cost jumps, from say 0 to 100, but in such a case, I think there should be a discontinuity rather than a ...
34 views

### Where to start, to know the cost, in hours of work, necessary to produce one more car (or any other good)?

Let's say I want to buy a car. It costs that, so I can know that, for example, I have to work 3 months to pay for it. But does the car really needs three months of human work to be build? What is the ...
11 views

### Unsolveable Demand/Utility Problem?

A consume has a preference relation on $\mathbb{R}^4_+$ with a utility function defined as $$U(x_1,x_2,x_3)=(\ln(3x_1+2x_2+x_3))^3$$ Find the demand at prices $p=(1,1,1)$ and wage $4$. Attempt I ...
16 views

### About marginal cost setting on Jordi Gali's work

I'm studying Gali's work with the paper(or book?) which is "Jordi Gali, Monetary policy inflation and the business cycle_An introduction to the new keynesian framework(2015)" and wonder one ...
47 views

### Maximize marginal products

Say a firm is facing a budget line as stated below:($K$ stands for capital and $L$ stands for labor) $$200K + 100L = 1000$$ Under this circumstance, a rational firm will look for ways to maximize its ...
7 views

### Non Linear regression to obtain diminishing marginal effect / elasticity

I am working with some real estate data on housing units. For a given market, I have data on occupied units, rents, and control variables such as population, demographics, income levels etc. I'd like ...
176 views

### The shift of Marginal Cost Curve

In standard microeconomics textbooks they usually assume that the cost curve consists of just two variables which are Capital and Labor ( I'm talking about this equation: TC = rK + wL) So when we ...
15 views

### Does a depreciation in the Dollar lead to a reduction in the US' marginal propensity to import?

Does a depreciation in the Dollar lead to a reduction in the US' marginal propensity to import? I thought it would because a weaker dollar makes imports more expensive, so consumers spend less of ...
the multiplier $= \frac{1}{(1-MPC)}$ and the multiplier $= \frac{1}{MPW} = \frac{1}{MPS+MPM+MPT}$. Now since $MPC + MPS = 1$ it follow that $1-MPC = MPS$, therefore the multiplier = \$\frac{1}{(...