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Production Cost, Price, and Profit Modeling


Aegis combines expertise in economics, engineering, statistics, and computer science to develop and deploy comprehensive market models. Marginal cost, long run cost, cost allocation, and optimal pricing are key factors that influence business planning and the achievement of these plans. Our models have diverse applications, and are used in business, regulatory, and litigation settings.  We offer analysis of:

  • Short run marginal production cost.
  • Capacity constraints and long run incremental cost.
  • Economies of scale, scope, network, and density.
  • Long and short run customer demand elasticities.
  • Game theoretic analysis of competitor market entry and behavior.