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 ?
The low-price strategy makes sense on two levels: First, it approximates marginal-cost pricing, since software, once written, costs very little for each additional copy.
We reach this conclusion even after accounting for several factors--international competition, public goods, and budget deficits--that might seem at first glance to require departures from marginal-cost pricing.
s marginal-cost pricing theory, on which its access charge proposal is based, is little more than blue smoke and mirrors.