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 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

And in this case, the marginal cost of each ticket is small – there are not even any very substantial overheads to cover, which often justify a higher price.

From Salon • Jun. 14, 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

Phosphate production has declined since 1989, as demand has   fallen in traditional markets and as the marginal cost of extracting   the remaining phosphate increases, making it less internationally   competitive.

From The 2003 CIA World Factbook by United States. Central Intelligence Agency