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Definition of "marginal cost" []

  • The increase in cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output. Additional cost associated with producing one more unit of output. (noun)

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Use "marginal cost" in a sentence
  • "But when you get this problem of these diseasesthis sounds like an awful thing to saybut when diseases affect both rich and poor countries, trickle-down will eventually work for the poorest, because the high cost of development is recovered in the rich world and then, as they go off patent, theyre sold for marginal cost to the poor, and everybody benefits."
  • "And because we make a product whose marginal cost of production is very lowsoftwareand because information empowerment is so directly what were about, its not a stretch in any way, the idea that we go into over one hundred countries and do these things where we donate massive amounts of software."
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