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marginal cost
(redirected from Marginal cost pricing)

   Also found in: Financial, Wikipedia, Hutchinson 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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Under the marginal cost pricing mechanism that applies in the European energy market, this means the "market price" of energy will go up by the extra cost incurred by the ETS.
Although marginal cost pricing may never prevail in the Internet markets, the lower online search costs will lead to lower prices and lower price dispersion for homogeneous goods (see, e.
While assessing a zero cost for such use may be correct marginal cost pricing, for a computer, every machine cycle has, in effect, zero marginal cost until the last one, and marginal cost pricing will not pay for the computer.
 
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