marginal cost of production

marginal cost of production
marginal cost marginal cost, marginal cost of production marginal cost of production . (Economics) The increase in total cost of production as a result of producing one more unit of output; since certain ovrhead costs are fixed, the marginal cost is almost aways less than the total per-unit cost of production averaged over all units produced.

Syn: incremental cost, differential cost. [WordNet 1.5]


The Collaborative International Dictionary of English. 2000.

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  • Marginal Cost Of Production — The change in total cost that comes from making or producing one additional item. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale. The calculation is most often used among… …   Investment dictionary

  • marginal cost — marginal cost, marginal cost of production marginal cost of production . (Economics) The increase in total cost of production as a result of producing one more unit of output; since certain ovrhead costs are fixed, the marginal cost is almost… …   The Collaborative International Dictionary of English

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  • Cost-of-production theory of value — In economics, the cost of production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can compose any of the factors of production… …   Wikipedia

  • marginal cost — The increase or decrease in a firm s total cost of production as a result of changing production by one unit. Bloomberg Financial Dictionary * * * marginal cost marginal cost ➔ cost1 * * *    The additional cost of one extra unit of production, e …   Financial and business terms

  • marginal-cost pricing — In economics, the practice of setting a product s price equal to the additional (marginal) cost of producing one more unit of output. The producer charges an amount equal to the cost of the additional economic resources. The policy is used to… …   Universalium

  • marginal cost — The additional cost incurred as a result of the production of one additional unit of production. In accounting, it usually equates to the variable costs per unit of production. The variable costs are usually regarded as the direct costs plus the… …   Big dictionary of business and management

  • marginal cost — The additional cost incurred as a result of the production of one additional unit of production. It usually equates to the direct costs plus the variable overhead costs …   Accounting dictionary

  • marginal cost — 1. The incremental increase in total *variable and *fixed costs arising from the manufacture of an additional unit of production. 2. A British term for *variable cost …   Auditor's dictionary

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