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

“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

“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

In the U.S., we are focused on driving the marginal cost of intelligence to zero, as Henry put it.

From Barron's • Jan. 9, 2026

The marginal cost of wool is thus £ 10/28 per unit.

From Supply and Demand by Henderson, Hubert D.