marginal cost

Definition

The cost associated with one additional unit of production. also called incremental cost.

Use marginal cost in a sentence

I had to figure out the marginal cost because money was a really big issue right now and I did not want to mess anything up.

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The marginal cost was decreasing due to our economy of scale so we were investing more dollars in advertising to increase demand.

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The marginal cost to the business of producing an extra 10 chairs would require hiring an additional salaried worker for $32,000 per year.

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