Yet that may be because investors prefer immediacy of execution to marginal price improvement.
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When the marginal price of electricity increases (driven by underlying gas prices), they derive more value from their existing nuclear assets (assuming they are unhedged).
Marginal cost begins to exceed average cost, creating a profit margin despite competitive pressure to price to marginal cost.
Almost every market for technology products or services in China is oversupplied and many firms price below marginal cost.
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Hence a higher number of Internet users than we expect will have a marginal impact on the stock price.
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All intellectual property violates the efficiency rule that price should equal marginal cost of reproduction, which for knowledge is nearly zero.
Thus, even if the company manages to double its market share by the end of our forecast period, it will only have a marginal impact on its stock price.
If workers can price discriminate by offering marginal employees lower wages, then market power need not create unemployment.
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For starters, consider the fact that the degree of market failure varies from region to region: the difference between the price of water and its true marginal cost must be higher in dry places than wet ones.
Time tested economic theory tells us that in a free, unfettered market not constrained by onerous barriers to entry, the long term price of a commodity will approach its marginal cost of production.
If the carbon price is too high, it could make many marginal projects uneconomic.
Obviously so: those supplies with the highest marginal costs will be the first to disappear if the market price drops.
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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Moreover, CMS chooses as the final price the median among the winning bids, instead of marginal cost, which would drive pricing in a competitive market.
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His conclusion: Disney should charge what the traffic will bear at the gate, then cut the price of individual rides down to their (very low) marginal cost.
However, if Barrick only made marginal purchases over this time, it would be a bullish sign for the price of gold.
Dropping marginal tax rates on the wealthy in America has meant that the tax-price of donation there has soared over the past decades (see chart).
As gold declines in price, the least viable mines will be the first closed and bring down the marginal cost.
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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"Freemium is really a construct of the digital age because there's almost no marginal cost to digital goods, " said Chris Anderson, author of "Free: The Future of a Radical Price, " and editor in chief of Wired magazine.
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