Quick Answer: What Is The Best Definition Of Marginal Cost?

What is called marginal cost?

Marginal cost refers to the increase or decrease in the cost of producing one more unit or serving one more customer.

It is also known as incremental cost..

What is another word for marginal?

In this page you can discover 29 synonyms, antonyms, idiomatic expressions, and related words for marginal, like: nonessential, limited, tolerable, modest, negligible, passable, so-so, indifferent, bordering, borderline and circumferential.

What is a marginal case meaning?

i. The Argument From Marginal Cases. The Argument from Marginal Cases is an argument that attempts to demonstrate that if animals do not have direct moral status, then neither do such human beings as infants, the senile, the severely cognitively disabled, and other such “marginal cases” of humanity.

How do you explain marginal cost?

Marginal cost represents the incremental costs incurred when producing additional units of a good or service. It is calculated by taking the total change in the cost of producing more goods and dividing that by the change in the number of goods produced.

What is marginal cost and example?

Marginal cost of production includes all of the costs that vary with that level of production. For example, if a company needs to build an entirely new factory in order to produce more goods, the cost of building the factory is a marginal cost.

What is the definition of marginal benefit?

A marginal benefit is a maximum amount a consumer is willing to pay for an additional good or service. It is also the additional satisfaction or utility that a consumer receives when the additional good or service is purchased.

What is marginal cost and average cost?

Marginal cost is the change in total cost when another unit is produced; average cost is the total cost divided by the number of goods produced.

What is marginal cost with diagram?

Because the short run marginal cost curve is sloped like this, mathematically the average cost curve will be U shaped. Initially, average costs fall. But, when marginal cost is above the average cost, then average cost starts to rise. Marginal cost always passes through the lowest point of the average cost curve.

What is marginal cost on a graph?

Now we get into the most interesting and important cost curve, the Marginal Cost Curve. It is the additional cost of producing one more unit and later on will allow us to maximize profits.

What is the meaning of marginal?

Use the word marginal when something is minimal or barely enough. These are the figurative uses for marginal, which comes from the Latin word margo “edge.” Literally, the word is used with things on a border. … When you scribble words in the blank edges of your textbook pages, those notes are marginal.

What is the definition of marginal cost quizlet?

Marginal Cost. The cost to buy or produce one more unit of a good or service. Includes vale of alternatives given up to produce that unit (opportunity cost) Marginal Cost= Direct Costs (out of pocket) + Indirect Costs (opportunity cost)