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marginal cost

   Also found in: Dictionary/thesaurus, Medical, Financial, Acronyms, Wikipedia 0.02 sec.
marginal cost [′mär·jən·əl ′kȯst]
(industrial engineering)
The extra cost incurred for an extra unit of output.


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Variable costs refer to the marginal cost of producing a chip, excluding capital investments and other fixed costs.
One of the benefits of outsourcing projects is that once the initial capital investment is made there is only a marginal cost to bolting on new business or customers.
It's a revenue stream that's almost pure profit, since the marginal cost of transporting a free passenger is basically a can of soda, a bag of peanuts, and the incremental fuel cost--a little less than 3 cents a mile at current prices, or about $38 for a round trip between Chicago and New York.
 
 
 
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