Definitions for marginal cost
mar·ginal cost

Princeton's WordNetRate this definition:0.0 / 0 votes

1. marginal cost, incremental cost, differential costnoun

   the increase or decrease in costs as a result of one more or one less unit of output

WiktionaryRate this definition:0.0 / 0 votes

1. marginal costnoun

   The increase in cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output. Additional cost associated with producing one more unit of output.

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1. marginal cost

   Marginal cost refers to the cost incurred in producing a single additional unit of a product or service. It is a key economic concept that helps determine the optimal level of production, where marginal cost equals marginal revenue, resulting in maximum profitability. It is calculated by dividing the change in costs by the change in quantity.

WikidataRate this definition:0.0 / 0 votes

1. Marginal cost

   In economics and finance, marginal cost is the change in the total cost that arises when the quantity produced changes by one unit. That is, it is the cost of producing one more unit of a good. In general terms, marginal cost at each level of production includes any additional costs required to produce the next unit. For example, if producing additional vehicles requires building a new factory, the marginal cost of the extra vehicles includes the cost of the new factory. In practice, this analysis is segregated into short and long-run cases, so that over the longest run, all costs become marginal. At each level of production and time period being considered, marginal costs include all costs that vary with the level of production, whereas other costs that do not vary with production are considered fixed. If the good being produced is infinitely divisible, so the size of a marginal cost will change with volume, as a non-linear and non-proportional cost function includes the following: ⁕variable terms dependent to volume, ⁕constant terms independent to volume and occurring with the respective lot size, ⁕jump fix cost increase or decrease dependent to steps of volume increase. In practice the above definition of marginal cost as the change in total cost as a result of an increase in output of one unit is inconsistent with the differential definition of marginal cost for virtually all non-linear functions. This is as the definition finds the tangent to the total cost curve at the point q which assumes that costs increase at the same rate as they were at q. A new definition may be useful for marginal unit cost using the current definition of the change in total cost as a result of an increase of one unit of output defined as: TC-TC and re-defining marginal cost to be the change in total as a result of an infinitesimally small increase in q which is consistent with its use in economic literature and can be calculated differentially.

Matched Categories

1. • Monetary Value

How to pronounce marginal cost?

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How to say marginal cost in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of marginal cost in Chaldean Numerology is: 1

2. Pythagorean Numerology

   The numerical value of marginal cost in Pythagorean Numerology is: 6

Examples of marginal cost in a Sentence

1. The RBI:

   For monetary transmission to occur, lending rates have to be sensitive to the policy rate, it was observed that base rates based on marginal cost of funds are more sensitive to changes in the policy rates.

2. Joseph Lazio:

   In some cases, its only a marginal cost.

3. Fabrice Bregier:

   A stretch is feasible at marginal cost, but it depends on our market appreciation and so far the challenge is to convince new airlines that they can profitably increase their market share with an aircraft which is, it's true, much bigger than what they are used to fly.

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=marginal cost
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Marginal_Cost
3. ^ ChatGPT
   https://chat.openai.com
4. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=marginal cost