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Meaning of marginal cost

 

 

 

Marginal cost

 

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Business glossary

 

Meaning of term marginal cost :

 

The marginal cost is the cost of producing one extra unit. It is the increase in total cost when one more unit is produced. For example, if cost increases from £200 to £225 when one more unit is produced, then the marginal cost is £25.

 

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Marginal cost

 

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Meaning of term marginal cost

 

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