Hello everyone, the question might sound a bit too trivial but I am really stuck on this in my modeling attempt and need a second opinion on it. Is the following derivation of marginal costs correct?
1-Gamma is just a function affecting the output but is not related to labor and A is labor productivity.
My production function has the following form:
Total real costs of the production are
And the resulting marginal costs in real terms
Thanks a lot in advance!