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 ambiguous evidence on the marginal cost coefficient may be related to weak identification through weak instrumental variables in the GMM estimation.
Next we have estimated the inflation adjustment equation both with output gap and real marginal cost as determinant of inflation and find that real marginal cost and not the output gap is driving force of inflation.
The marginal costs of carbon sequestration: Implications of one greenhouse gas mitigation activity.
Firms should always operate in the region of output where short-run marginal cost is upward-sloping, represented by the dotted lines in the figure.
(7) To minimize the cost of any given level of pollution abatement, the efficient allocation of that abatement among polluters would equalize the marginal cost of pollution control for all polluters.
where P = price; Q = quantity; MC = marginal cost; and AC = average
Thus said, it is important to note that textbooks only deal with the quantitative view of marginal cost. In the power generation industry, as equally important as quantitative marginal cost is qualitative marginal cost: the question of what to spend marginal cost on.
The intuition of (18) will be developed further below (see Equation (24)) but for now notice at the optimum that the marginal value of an R&D dollar (19) is equal to 1 (the marginal cost of an R&D dollar).
Utilizing a flexible production structure that nests increasing, decreasing, and constant marginal cost, we derive the appropriate estimating equation from an otherwise standard international trade model.
Lending rates to be set with reference to marginal cost of funding
But banks say it's easier said than done.In order to improve the efficiency of monetary policy transmission, the RBI will encourage banks to move in a time-bound manner to marginal cost of funds-based determination of their base rates.
Published estimates by industry sources range from a marginal cost of $55 or $65 to as much as $75 or $85 per barrel.