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

See Examples For:

marginal cost

The Congressional Research Service estimated that shipboard, solid-state lasers can fire at a marginal cost between $1 and $10 per shot.

From MarketWatch ● Jun. 29, 2026

And in this case, the marginal cost of each ticket is small – there are not even any very substantial overheads to cover, which often justify a higher price.

From Salon ● Jun. 14, 2026

“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

“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

This extra cost we can regard as constituting the marginal cost of mutton.

From Supply and Demand by Henderson, Hubert D.