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 peak of $125,000 in October 2025 was at a cycle high of 1.4 times marginal cost.

From MarketWatch ● Aug. 27, 2026

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

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

“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 question should thus at once suggest itself—"Can we speak appropriately of the marginal cost of production, and will this serve to make clear the relation between cost and price?"

From Supply and Demand by Hubert D. Henderson