The markdown pricing problem has significant similarities to the problems addressed in yield management, including zero marginal product costs, perishability and time-phased demand.
32.
The higher prices are usually paid because the marginal product of capital is higher for people with little or no access to it.
33.
"It is the marginal product that is being affected as tenants opt for a better product in this kind of market, " he said.
34.
Where F _ i denotes the partial derivative with respect to factor i, or for the case of capital and labor, the marginal products.
35.
Secondly it is depressed by the growth rate in the working population l weighted by one minus the proportional marginal product of labour l-Q.
36.
The curve shows the relationship between the quantity demanded and the wage rate holding the marginal product of labor and the output price constant.
37.
However, a reduction in the wage share is not possible in neoclassical models due to the assumption that wages equal the marginal product of labor.
38.
Harberger's conclusion, seen as surprising at the time, was that the corporate income tax lowers the after-tax marginal product of all owners of capital equally.
39.
This does not imply that larger firms will be more productive than small ones, because at the firm level the marginal product of capital is still diminishing.
40.
When not scaled properly, the marginal product of labor may go down when the number of employees goes up, creating a situation known as diminishing marginal returns.
