Quantifying the Marginal Cost Increase from Imported Materials
In economic models that incorporate the cost of imported materials, the marginal cost of production is represented as being higher by a factor of than in a simplified model where labor is the only input. The Greek letter (psi) quantifies the proportional impact of these imported material costs on the total marginal cost.
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Ch.2 Unemployment, wages, and inequality: Supply-side policies and institutions - The Economy 2.0 Macroeconomics @ CORE Econ
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