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 analysts define their price as a multiple of marginal cost — the cost of the least efficient miner — of the last two cycles, from 2016 to 2019 and 2020 to 2023.

From MarketWatch ● Aug. 27, 2026

Their base case holds that the 2029 peak of $300,000 will be reached with a multiple of 1.25 marginal cost, and the $1 million 2033 peak via a multiple of 1.2 times.

From MarketWatch ● Aug. 27, 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

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

The process of substitution will in fact be continued until we reach the point at which the marginal cost is about equal to the price.

From Supply and Demand by Hubert D. Henderson