释义 |
marginal cost ThesaurusNoun | 1. | marginal cost - the increase or decrease in costs as a result of one more or one less unit of outputdifferential cost, incremental costmonetary value, price, cost - the property of having material worth (often indicated by the amount of money something would bring if sold); "the fluctuating monetary value of gold and silver"; "he puts a high price on his services"; "he couldn't calculate the cost of the collection" |
marginal cost
marginal cost[′mär·jən·əl ′kȯst] (industrial engineering) The extra cost incurred for an extra unit of output. marginal cost
marginal cost An actuarial term referring to the additional cost required to produce an additional unit of benefit (e.g., unit of health outcome).marginal cost
Marginal costThe increase or decrease in a firm's total cost of production as a result of changing production by one unit.Marginal CostThe total cost to a company to produce one more unit of a product. The marginal cost varies according to how many more or fewer units a company wishes to produce. Increasing production may increase or decrease the marginal cost, because the marginal cost includes all costs such as labor, materials, and the cost of infrastructure. For example, if a widget manufacturer increases the number of widgets it produces, it may need to buy more material, but the costs of labor and factory maintenance remain the same, and are spread out over a greater number of widgets. This may reduce the marginal cost. On the other hand, if the manufacturer hires more workers and builds another factory, it will likely increase the marginal cost. It is also known as the incremental cost.marginal cost The additional cost needed to produce or purchase one more unit of a good or service. For example, if a firm can produce 150 units of a product at a total cost of $5,000 and 151 units for $5,100, the marginal cost of the 151st unit is $100. Industries with sharply declining marginal costs tend to be made up of firms that engage in price wars to gain market share. For example, the airlines often discount fares to fill empty seats with customers from competing airlines. Also called incremental cost.marginal cost the extra cost that is incurred by a firm in increasing OUTPUT by one unit. Given that FIXED COSTS do not vary with output, marginal costs are entirely marginal VARIABLE COSTS. Marginal cost generally includes the DIRECT MATERIALS and DIRECT LABOUR COST of a product along with VARIABLE OVERHEADS. See MARGINAL REVENUE. Fig. 114 Marginal cost. marginal cost the extra cost (addition to TOTAL COST) that is incurred in the SHORT RUN in increasing OUTPUT by one unit. Given that FIXED COSTS do not vary with output, marginal costs (MC) are entirely marginal VARIABLE COSTS. MC falls at first, reflecting increasing RETURNS TO THE VARIABLE-FACTOR INPUT so that costs increase more slowly than output, as shown in Fig. 114. However, MC then rises as decreasing returns set in so that costs increase faster than output. MC together with MARGINAL REVENUE determine the level of output at which the firm attains PROFIT MAXIMIZATION. AcronymsSeemad cowmarginal cost
Synonyms for marginal costnoun the increase or decrease in costs as a result of one more or one less unit of outputSynonyms- differential cost
- incremental cost
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