marginal cost

Frequency: 7.512.0 per million words

the cost of producing one more unit of a good

marginalADJECTIVE + NOUN

Categories:

cost

Examples (10)

  • To maximize profit, a company should produce until marginal cost equals marginal revenue.
  • The marginal cost of producing an additional unit can vary greatly depending on scale.
  • Economists often analyze the impact of changes in marginal cost on pricing strategies.
  • Calculating marginal cost is crucial for short-term production decisions.
  • Automation can significantly reduce the marginal cost per item.
  • For many digital products, the marginal cost of distribution is almost zero.
  • The startup struggled to lower its marginal cost in the early stages.
  • Understanding marginal cost helps businesses determine optimal output levels.
  • Introducing new technology could decrease the marginal cost of production.
  • The firm evaluated its marginal cost curves to identify efficiencies.