Definition of marginal cost in English:

marginal cost

Line breaks: mar|gin¦al cost

noun

Economics
  • The cost added by producing one extra item of a product: this system allowed local authorities to increase expenditure without bearing the full marginal cost
    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.

More definitions of marginal cost

Definition of marginal cost in:

Get more from Oxford Dictionaries

Subscribe to remove ads and access premium resources

Word of the day coloratura
Pronunciation: ˌkələrəˈto͝orə
noun
elaborate ornamentation of a vocal melody