12

The full quote from the cited reference (p. 181) is Marginal cost is not the cost of producing the "last" unit of output. The cost of producing the last unit of output is the same as the cost of producing the first or any other unit of output and is, in fact, the average cost of output. Marginal cost (in the finite sense) is the increase (or decrease) in ...


4

There is no distinction between money in microeconomics or macroeconomics. In both fields money is medium of exchange, unit of account and store of value. The misconception you have probably arises from the role money plays in microeconomics and macroeconomics. In microeconomics money is almost always neutral - that is it has no impact on the real ...


3

The two statements are similar. For the website example, you could say that the marginal product of the first 5 workers is 50 units. For the next 5 workers, however, you could deduce that the marginal product is less than 50 units (otherwise "the next 50 units" would require exactly 5 workers, not 10 workers). The website is merely stating that, in order ...


1

I think for your purposes, the best answer to the question is what you appear to be anticipating: in certain macroeconomics discussions, "money" operates primarily as a unit of account, because of the convenience it offers in allowing the ability to "measure" all the different forms of economic output with a single unit. In that sense, it plays a similar ...


1

The variable unit in the quotation is the factor of production that is varied keeping the others fixed. For example it could be the amount of workers hired, while keeping the amount of machinery (capital) fixed. Or it could be the amount of machines reented, keeping the amount of workers fixed. As for your other question diminishing returns does not refer ...


1

The idea of a rational expectations equilibrium is more general than BNE. It simply means that the belief system of agents is consistent with the model and incorporates all available information. This abstract idea can be applied for games, markets or other types of interactions. BNE is a solution concept for non-cooperative games. The expectations being ...


1

Market sharing simply means that both platforms have some market share. So the condition can probably be obtained by finding the closed-form solution for market shares (not only implicitly as in (7)) and imposing the condition that all market shares are positive. This is akin to each platform having an interior solution. I am not sure which Hessian you are ...


1

The article Quality of Information and Oligopolistic Price Discrimination by Liu and Serfes covers this topic in great detail. It also has a rather nice literature review.


1

In case someone wanted the links for some of the references in the comments. Brookings Institute Peterson Institute for International Economics


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