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 ?
Further, "when near zero marginal cost is reached, goods and services become nearly free, profit margins evaporate, and private property exchanged in markets loses it reason for existing.
Ananda Bhoumik, senior director, banks, India Ratings, says, "The recommendation that banks compute their lending rate based on their marginal cost of funds and not on the weighted average cost could increase the volatility of the base rate, particularly for banks with higher dependence on bulk short-term deposits.
Thus, residential and commercial customers in the United States may already be facing prices that are above social marginal cost.
We thus reveal the efficient marginal cost for the winning bid supplier at the first stage (RA), regardless of the efficiency of the other bidders.
It is needed to point out that in Section 3, the allocation results of output and the water supply for two firms are obtained on the condition that the marginal cost information of two firms is common knowledge; that is, one firm knows the exact marginal cost of the opposite firm, which strictly restricts the applicable area of the game model established in Section 3 under the setting of complete information.
This figure clearly shows that reducing vehicle weight using technology with a marginal cost of $12.
The marginal cost of production is a key element in business decisions: firms cannot make good decisions about how to produce goods, or what prices to charge for them, without knowing the marginal cost of production.
Inflation is determined by other agents' pricing decisions and their marginal cost forecasts.
equates marginal revenue with marginal cost in setting price.
Every first year student of telecommunications law and economics learns that marginal cost pricing is infeasible, indeed irrational, in communications markets, yet the FCC requires evidence of such pricing as the forbearance threshold," says Phoenix Center Chief Economist and study co-author Dr.
A monopolist that can continuously adjust his nominal price will set the price to equate contemporaneous marginal revenue and marginal cost and the price will be a markup over marginal cost.
Competition drives prices down to the marginal cost of production, but can be subverted by barriers to entry and other means.
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