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marginal cost
(redirected from Marginal cost of capital)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.
marginal cost [′mär·jən·əl ′kȯst]
(industrial engineering)
The extra cost incurred for an extra unit of output.


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PHARMACEUTICAL R&D INVESTMENT Basic economic theory predicts that firms invest in capital up to the point where the expected marginal efficiency of investment (MEI) is equal to the marginal cost of capital (MCC).
Building on the idea that a weak legal environment increases the cost of external financing, the authors derive a model of investment in which changes in the marginal cost of capital are identified by changes in leverage and by the interactions of leverage with the concentration of inside equity ownership.
The general failure of the business to earn profits sufficient to equal or exceed the marginal cost of capital.
 
 
 
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