What is the definition of Marginal Cost?
- Posted on November 20, 2019
- Financial Terms
- By admin admin
Marginal cost is a term used in economics and accounting to describe the cost of producing one extra unit of goods or services above what is currently being produced. For example, if it costs a firm $500 to produce 10 TVs and $550 to produce 11, the marginal cost is $50. Marginal cost will usually vary with output.
Be the first to comment!
You must login to comment