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.