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marginal cost

American  

noun

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


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


Etymology

Origin of marginal cost

First recorded in 1925–30

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

See Examples For:

The peak of $125,000 in October 2025 was at a cycle high of 1.4 times marginal cost.

From MarketWatch Aug. 27, 2026

Their bull case would see that marginal cost expand to 2 times due to currency debasement and capital flow into hard assets.

From MarketWatch Aug. 27, 2026

The fact that marginal cost pricing would lead to reselling, creating windfall profits for anyone lucky enough to get a rationed ticket, does not alter the principle.

From Salon Jun. 14, 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

The process of substitution will in fact be continued until we reach the point at which the marginal cost is about equal to the price.

From Supply and Demand by Hubert D. Henderson

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