STSTEER

Marginal Cost

Deriving a firm's short-run marginal cost function from its production function and wage.

Question template

You operate a medical diagnostic center. The fixed costs for your center, including rent and utilities, are f cost. The diagnostic output depends on the number of hours your medical team works and the advanced diagnostic machines you have, as described by p function. Your machines are fixed at capital. If the cost of medical staff labor is c function, what is the marginal cost of an additional diagnostic test? Take Q as the output given by the production function, L as its variable input and K as fixed at capital; the variable cost is $wage per unit of L (c function in total) and the fixed cost is f cost. Treat output as divisible and give the marginal cost dC/dQ as a function of Q, with the coefficient and the exponent rounded to two decimal places.

Use it

from datasets import load_dataset
ds = load_dataset("narunraman/steer_me", "marginal_cost")