Definition of marginal cost in English:

marginal cost


  • The cost added by producing one additional unit of a product or service.

    ‘this system allowed local authorities to increase expenditure without bearing the full marginal cost’
    • ‘This is the well-known, efficiency-pricing principle that requires that prices equal the marginal costs of usage.’
    • ‘I wonder if it just does not reflect the fact that nobody, for the time being, is willing to price below marginal cost or at marginal cost.’
    • ‘The optimal rent is the quantity at which the marginal rent equals the marginal cost.’
    • ‘In the context of public services, users should pay marginal costs and site owners should pay the fixed costs through a tax on site rates.’
    • ‘In order to maximize its profits, it produces an output where the marginal revenue associated with the last unit sold is just equal to the marginal costs associated with producing and selling that final unit.’
    • ‘Some services, such as street parking, are provided at a price well below the marginal cost.’
    • ‘This in turn may lead to possibly having to make more products later at higher marginal costs.’
    • ‘In other words, marginal costs and average costs are both equal to each other and fixed.’
    • ‘At local level the costs (especially marginal costs and opportunity costs) and outcomes can be very different from the norm.’
    • ‘Optimisation requires that marginal product of each factor is equal to its marginal cost.’
    • ‘These are products where the costs of development are high, and the costs of setting up factories to make the products are perhaps high too, but the marginal costs of making individual products are very low to negligible.’
    • ‘The marginal costs of servicing these extra accounts would be minimal and therefore the salesperson's contribution to profit would substantially increase.’
    • ‘The marginal costs of long-term wage contracts increase with variability in aggregate demand.’
    • ‘First, as scale economies grow, fixed costs rise and marginal costs fall.’
    • ‘If an industry with high fixed costs and low marginal costs should face strong competition, prices would fall below the level where firms could meet fixed cost charges, such as rent and interest payments.’
    • ‘However, the marginal cost is close to zero for most of the physical infrastructure and services provided for street use.’
    • ‘We then rerun the model for each of those farms with the estimated additional leased acres and actual cash rent specified in the model to estimate the regulation costs and the marginal costs.’
    • ‘Toward that end, it examines direct costs, indirect costs, marginal costs, and investments.’
    • ‘Network effects are instead caused by peculiarities of production costs: if marginal costs are sufficiently low then there will be too little production of network services.’
    • ‘Setup costs are high, while the marginal cost of servicing a new customer is usually low, so they need to achieve scale and market share quickly.’