marginal cost

marginal cost
marginal cost marginal cost, marginal cost of production marginal cost of production . (Economics) The increase in total cost of production as a result of producing one more unit of output; since certain ovrhead costs are fixed, the marginal cost is almost aways less than the total per-unit cost of production averaged over all units produced.

Syn: incremental cost, differential cost. [WordNet 1.5]


The Collaborative International Dictionary of English. 2000.

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  • marginal cost of production — marginal cost marginal cost, marginal cost of production marginal cost of production . (Economics) The increase in total cost of production as a result of producing one more unit of output; since certain ovrhead costs are fixed, the marginal cost …   The Collaborative International Dictionary of English

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  • marginal-cost pricing — In economics, the practice of setting a product s price equal to the additional (marginal) cost of producing one more unit of output. The producer charges an amount equal to the cost of the additional economic resources. The policy is used to… …   Universalium

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  • marginal-cost transfer prices — Transfer prices set by marginal cost pricing When there is no market for the goods and services that are bought and sold between the divisions of an organization, the transfer price should be the marginal cost, which is normally assumed to be… …   Big dictionary of business and management

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