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

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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

“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

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

From Supply and Demand by Hubert D. Henderson

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