Entity: MARGINAL-COST
Marginal cost refers to the expense incurred in creating one additional unit of a product or service. It is the change in total cost resulting from producing one more item.
Marginal-Cost
Etymology
The term 'marginal cost' originates from economics and is used to describe the cost of producing one additional unit of a product or service.
Definition
Marginal cost refers to the expense of creating one more item for sale. It is the cost associated with producing one additional unit of a product or service.
Historical Context
Marginal cost has been a fundamental concept in economics, guiding pricing strategies and production decisions for businesses.
Cultural Significance
The concept of marginal cost plays a crucial role in determining optimal production levels and pricing strategies in various industries.
Related Concepts
Other related concepts include average cost, total cost, and marginal revenue.
See Also
The cost associated with producing one additional unit of a product or service.