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Their wages would be bid up to their marginal product within the region.
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Say tacocopters triple what you can buy with a dollar, but cut the marginal product of a large portion of the population in half.
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Calculating the marginal product of capital is devilishly difficult.
ECONOMIST: Economics focus
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The important indirect effects in the developed world (see Eli for thoughts on the developing world) will be to reduce congestion, to and reduce the median marginal product of workers currently employed in the transportation industry.
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The value of the education, marketing, and training received through athletic scholarships exceeds the individual marginal revenue product for at least 90% of all student-athletes in Division I sports.
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And rather than suggesting it was folly for AstraZeneca to support this study, they should receive public praise and encouragement for taking a risk and putting the key question about the marginal benefit of their product on the table.
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The economics of the vaccine industry, he points out, are much like those of software: the marginal cost of each new product is very small.
ECONOMIST: Philanthropy
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This contributes no profit on the first visit unless the marginal cost is very small or the discounted product pulls through other profitable sales.
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Read UpToDate, and you might assume that the drug would be utilized only in highly specialized situations, and would consequently achieve marginal sales at best, essentially as a niche product.
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