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

“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

“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

For, while it is impossible to separate out the total utility and cost of wool, it is not impossible to disentangle its marginal utility and its marginal cost.

From Supply and Demand by Henderson, Hubert D.