For instance, the use of a variable fee with no fixed fee (as is observed in the soil carbon sequestration market) is optimal when the adjusted inframarglnal elasticity of supply ([epsilon/s]) equals the elasticity of participation (E), while the use of negative fixed fees is optimal when participation is relatively elastic compared to inframarginal supply (which is likely to be the case in manure lagoon projects, where this type of pricing pattern is in fact observed; see Introduction).

1 Estimations of Wage Elasticity of Supply of Staff Currently Working in Aged Care

Note how the size of the fraction, which the wage is of MRP, depends on the value of the wage elasticity of supply (e): if the value e equals 1, the fraction is .