marginal cost

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marginal cost

[′mär·jən·əl ′kȯst]
(industrial engineering)
The extra cost incurred for an extra unit of output.
References in periodicals archive ?
There are, however, few resources available to educators or practicing managers that highlight the decision errors that can result from not recognizing the effects of the non-constant marginal cost of capital.
It is also the marginal cost of capital since it is the return for a marginal expansion investment made by a value maximizing manager.
The authors showed how a regulator, by tying a firm's allowed profit to its capital stock and offering a rate of return on capital that exceeds the marginal cost of capital, provides the firm the incentive to purchase an inefficiently large amount of capital.