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

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

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

“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

The desirable relation of price to marginal cost is but imperfectly attained.

From Supply and Demand by Henderson, Hubert D.