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

Gavekal Research suggests the current AI investment climate resembles an “irrational bubble” due to high marginal costs and capital intensity.

From Barron's

“We are clearly producing personalised, interactive knowledge at your fingertips at zero marginal cost,” he said.

From BBC

Publishers are reaping massive profits from this model, charging hundreds of dollars for each digital textbook while their marginal costs remain negligible.

From Seattle Times

The trouble is, the factors that go into marginal costs — costs once overheads are covered — aren't equal across the chain.

From Salon

“The marginal cost of funds for the U.S. banking system has just gone up a lot as a result of this flurry,” said William S. Demchak, the chief executive of PNC.

From New York Times