marginal cost

noun

, Economics.

1. the cost of one additional unit of any item produced or bought in quantity.

marginal cost

1. The change in total cost of production when an output is varied by one unit.

Word History and Origins

Origin of marginal cost¹

First recorded in 1925–30

Example Sentences

“We are clearly producing personalised, interactive knowledge at your fingertips at zero marginal cost,” he said.

From BBC

Publishers are reaping massive profits from this model, charging hundreds of dollars for each digital textbook while their marginal costs remain negligible.

From Seattle Times

"Our country has the right to pay for electricity at the average cost of production and certainly not at the marginal cost of the latest gas-fired power plant in eastern Europe."

From Reuters

For a supermarket, marginal cost includes all the expenses of running a store, which is typically over 90% of their costs.

From Salon

“The marginal cost of funds for the U.S. banking system has just gone up a lot as a result of this flurry,” said William S. Demchak, the chief executive of PNC.

From New York Times