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

“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

Based on where AI is now, the marginal cost of intelligence in white-collar work is going to zero over the next several years.

From Barron's • Jan. 9, 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

A commodity tends to be produced on a scale at which its marginal cost of production is equal to its marginal utility, as measured in terms of money, and both are equal to its price.

From Supply and Demand by Henderson, Hubert D.