$2.$ The cost of producing machine learning software depends on an individual$$s skill. In

particular, if an individual is skilled, then his or her variable cost is c S $($q$)=1$

$2$ q $2$ and

marginal cost c $$

S $($q$)=$ q$.$ In contrast, if the individual is unskilled, then his or her vari$-$

able cost function is c U $($q$)=2$q $2$ and marginal cost function c $$

U $($q$)=4$q$.$ In addition,

suppose that machine learning is highly specialized: skill in this specific industry does

not translate well to other industries. Therefore, both skilled and unskilled individuals

have the same fixed cost to enter the industry, f $=1$

$2.$ Therefore, the total cost function

of a skilled individual is $$c S $($q$)=1$

$2+1$

$2$ q $2,$ while the total cost function of an unskilled

individual is $$c U $($q$)=1$

$2+2$q $2.$