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

But you can ask your kid to pay you the marginal cost of their presence in the plan.

From The Wall Street Journal ● May 29, 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

“All this suggests that for AI companies, unlike dot-coms, the marginal cost of sales is relatively high, and the potential profit margin correspondingly thin,” Gave writes.

From Barron's ● Nov. 21, 2025

When we consider it as a producer, we say that its production of anything will not be carried beyond the point at which the marginal cost exceeds the price it will obtain.

From Supply and Demand by Henderson, Hubert D.