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Marginal Cost (Noun)

Meaning

The increase or decrease in costs as a result of one more or one less unit of output.

Classification

Nouns denoting attributes of people and objects.

Examples

  • The company was able to reduce its marginal cost by implementing more efficient production techniques.
  • Marginal cost plays a crucial role in determining the optimal level of production for a business.
  • By increasing efficiency and reducing waste, the factory was able to lower its marginal cost per unit.
  • The manager analyzed the marginal cost of producing one more widget to decide if the increase in production was worth the expense.
  • As the market price rose, the firm was motivated to increase production near to the point where marginal cost equaled market price.

Synonyms

  • Differential Cost
  • Incremental Cost

Hypernyms

  • Price
  • Cost
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