marginal cost

American  

noun

Economics.

1. the cost of one additional unit of any item produced or bought in quantity.

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marginal cost Cultural  

1. The change in total cost of production when an output is varied by one unit.

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Etymology

Origin of marginal cost

First recorded in 1925–30

Example Sentences

“We believe this will result in our growth continuing to come at a much lower marginal cost than what it has historically,” Walmart Chief Executive John Furner said during its earnings presentation.

From The Wall Street Journal • May 12, 2026

“The marginal cost of production in many Gulf states is very low and in some cases below $20 per barrel,” said Neil Shearing, chief economist at Capital Economics in London.

From The Wall Street Journal • Apr. 10, 2026

“While higher margins increase the marginal cost of trading, they are unlikely to halt gains, especially as investors also push cash prices higher,” said Rob Haworth, senior investment-strategy director at U.S.

From MarketWatch • Jan. 14, 2026

Whether it lowers “the marginal cost of human intelligence to zero,” as one panelist declared, or falls short of its promise, as another suggested, it is driving massive corporate spending and economic growth right now.

From Barron's • Jan. 9, 2026

The question should thus at once suggest itself—"Can we speak appropriately of the marginal cost of production, and will this serve to make clear the relation between cost and price?"

From Supply and Demand by Henderson, Hubert D.