The cost added by producing one extra item of a product.
More example sentences
- If an industry with high fixed costs and low marginal costs should face strong competition, prices would fall below the level where firms could meet fixed cost charges, such as rent and interest payments.
- Network effects are instead caused by peculiarities of production costs: if marginal costs are sufficiently low then there will be too little production of network services.
- First, as scale economies grow, fixed costs rise and marginal costs fall.
Definition of marginal cost in:
- The British & World English dictionary