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 ?
We suggest moving in the market socialist direction--toward marginal cost pricing combined with subsidization targeted to consumers who are both poor and high risk.
Marginal cost pricing is advocated with the aim of encouraging efficient use of the railway network (Bernardinoa, Hrebicekb, & Marquese, 2010).
One of the over-arching themes in these studies is the high economic cost of departures from marginal cost pricing.
His friend and former graduate student, Irwin Stelzer, urged him to take the job, arguing "you've just written the book [urging marginal cost pricing for utilities] and here's your chance to do it.
When advertising is free, the market outcome goes back to marginal cost pricing.
The additional sales are, of course, at a much lower price than would be possible in the home market and forces the students to explore the idea of marginal cost pricing utilizing price discrimination between this new market and her core market at home.
the decreasing cost case to come closer to marginal cost pricing in the
En Europa, por ejemplo, una politica tarifaria basada en costos marginales para el transporte por carretera ha sido investigada en el proyecto MC-ICAM (Implementation of Marginal Cost Pricing in Transport -Integrated Conceptual and Applaed Model Analysis) [10], cuyos resultados identifican tres tipos de obstaculos o barreras que pueden afectar a nivel nacional, regional y local la consumacion de este tipo de tarifacion.
Other papers that we have had the privilege of publishing over a three-decade period include a second-best problem in featherbedding (1976), price searching and tatonnement in general equilibrium models (1979), Hotelling's proof and the marginal cost pricing theorem (with Pfouts, 1981), price searching in general equilibrium models (1987), welfare effects of income and excise taxes (1995), price makers and non-clearing markets (1996), and modern game theory (1998).
The first is that water agencies do not intend prices to reflect marginal costs, as highlighted by the fact that no agency has adopted marginal cost pricing as a principle in water-rate design.
While recognizing that marginal cost pricing may not be the equilibrium strategy employed by the defendant (because products may be differentiated, for example), we recommend assuming that the plaintiff otherwise would compete against the defendant's product(s) priced at marginal cost.
effectively compel marginal cost pricing, and would frustrate entry into