Marginal costs for Internet transactions may be negligible, but fixed costs are anything but.
By capping the Medicare subsidy, seniors would pay for the marginal costs of their care, promoting competitive insurance.
When the marginal return on assets begins to approximate the marginal costs of borrowing, says Ken Fisher.
The study also found that the marginal costs of moving parts of D.
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In more jargony terms, social marketing is just great for producers with fixed costs and near zero marginal costs.
We can go further too: sunk costs make no difference at all to the marginal costs of providing something.
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Obviously so: those supplies with the highest marginal costs will be the first to disappear if the market price drops.
Without free trade, domestic companies may have enjoyed monopolies or oligopolies that enabled them to keep prices well above marginal costs.
The costs are all, or to an acceptable level of accuracy all, fixed costs and no to near no marginal costs.
The rush was on to take advantage of this price arbitrage that provided almost monopolistic prices, and only marginal costs of production.
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At some level of output their marginal costs rise as they begin paying overtime or putting their less efficient facilities into production.
Christensen also disagrees with the popular idea that in evaluating new opportunities, we should base our decisions on marginal costs and revenues.
And, thanks to the negligible marginal costs associated with the first of these initiatives, he can act without having to seek additional funding from Congress.
Maximization of profits by producing where marginal revenue equals marginal costs.
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Heavy fixed costs, including vehicle duties, insurance and depreciation, merely encourage drivers to use their cars more because the perceived marginal costs of motoring are so small.
What Ramsey proved is that the most economically efficient way to set prices when producers have high fixed costs and low marginal costs is (roughly) to soak the rich.
Nobody really knows because, save for the leap in petrol prices during the 1970s oil crises, there is little basis for estimating to what extent higher marginal costs reduce driving.
Yet what people desire to buy and what the companies desire to sell, are those offerings which have more than trivial marginal costs and which cannot, long term, afford the discounts.
By making domestic renewables part of their energy portfolio, American companies help stabilize their marginal costs of energy which is good for their bottom line, for the economy, and for American jobs.
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Yet each firm has sunk so much capital in plants that it is strongly tempted to use the capacity to build extra cars that fetch enough revenue to cover marginal costs in the short run, but not total costs in the long run.
The prof's New Economy spin was that frictional diminishing returns did not apply to software or Internet firms because of their tiny marginal unit costs.
However, should customers embrace the playback capabilities that marginal component costs will soon make a standard feature of their handsets, Apple will need to take a more active role if it wants to preserve the portable digital music experience it has executed so well.
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That is, that the value of the marginal spending is greater than the costs of the marginal taxation.
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Your raw material costs on the last and marginal dinner you prepare are still a significant part of the total costs.
The net benefit was marginal, and given the huge costs associated with culling, was not economically viable.
And the net has to take account of the fixed costs as well as the marginal ones.
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The company should already be charging the most it can for that marginal phone call and a change in sunk costs might affect accounting profit but not that revenue maximising price charged.
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Unfortunately, those fares are below average cost, which is higher than marginal cost due to the spreading of the huge fixed costs.
Given the large movements in the time allocated to these two categories, our results suggest that economists need to think hard about how individuals value the marginal time spent watching television or sleeping when computing the welfare costs of business cycles.
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Once a course is done and WGT has recouped its costs from the first several thousand players, it makes a healthy marginal profit from each additional player who tees off.
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