marginal cost

USAGE SUMMARY

'marginal cost' is a correct and usable term in written English.
It is a term that is used in economics and can be used in contexts like business, finance, or economics in general. For example, "The company was able to lower its marginal cost by introducing new technology".

✓ Grammatically correct

News & Media

Science

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

"The marginal cost of distribution is zero".

The Economist

Economists call this the "marginal" cost.

The New York Times - Magazine

The licence fee wouldn't be any cheaper, it would be a marginal cost".

The Guardian

So what GSK did... was get to the marginal cost to make those vaccines".

The Guardian

In the meantime, the long-run marginal cost of US shale continues to fall.

The Guardian - Business

The downside is heavy production costs, which raise the marginal cost of every new subscription gained.

The New York Times

Because the web creates weird levels of deep connectivity with no marginal cost".

The Guardian

The first is that the marginal cost of such products is close to zero.

The Economist

They are more confident online courses once developed will be reusable at low marginal cost.

The Economist

A book sold via a Kindle thus has no marginal cost, but adds revenues.

The Economist

Since there was zero marginal cost, the Pentagon had handed a gift to the world.

The Economist

Expert writing Tips

Best practice

When discussing business strategy or financial analysis, use "marginal cost" to precisely communicate the expense of producing additional units, enabling informed decisions about pricing and output.

Common error

Avoid using "marginal cost" interchangeably with average cost. "Marginal cost" refers only to the cost of the next unit, whereas average cost includes all costs divided by the total number of units.

Linguistic Context

The phrase "marginal cost" functions as a noun phrase, representing a specific economic concept. As Ludwig AI confirms, it's a standard term in economics, finance, and business. The phrase is used to quantify the cost associated with producing one additional unit of a good or service.

Expression frequency: Very common

Frequent in

News & Media

33%

Science

32%

Encyclopedias

2%

Less common in

Formal & Business

0%

Wiki

0%

Social Media

0%

Ludwig's WRAP-UP

The term "marginal cost" is a frequently used and grammatically correct phrase, as confirmed by Ludwig AI. Functioning as a noun phrase, it's primarily employed in professional and scientific contexts, particularly in economics and business. Ludwig's examples highlight its use in analyzing production costs, making strategic decisions, and understanding economic impacts. Its primary function is to precisely define the cost of producing one additional unit, aiding in informed decision-making. While "marginal cost" is a standard term, alternatives like "incremental cost" or "additional cost" can be used depending on the specific nuance needed. When writing, it is crucial to avoid confusing "marginal cost" with average cost to ensure accuracy in your analysis.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Incremental cost

Focuses on the addition to cost from a specific increase in activity.

Additional cost

Highlights the extra expenses incurred when producing one more unit.

Extra expense

Emphasizes the financial burden of producing an additional unit.

Cost of producing one more unit

Directly states the expense associated with an additional unit of production.

Cost increase per unit

Indicates the rise in cost for each additional unit produced.

Unit variable cost

Specifically refers to the variable expenses tied to a single unit.

Direct cost per unit

Focuses on the expenses that can be directly attributed to each unit.

Differential cost

Points to the difference in cost between two alternative decisions, often involving changes in production volume.

Expense of an extra unit

Highlights the out-of-pocket expenditure for each additional unit.

Variable expense per unit

Emphasizes the fluctuating nature of expenses linked to each unit of output.

FAQs

How to use "marginal cost" in a sentence?

You can use "marginal cost" to describe the cost of producing one additional unit of a product or service. For example, "The company analyzed the "marginal cost" before deciding to increase production."

What can I say instead of "marginal cost"?

You can use alternatives like "incremental cost", "additional cost", or "extra expense" depending on the context.

Which is correct, "marginal cost" or "average cost"?

"Marginal cost" refers to the change in total cost that arises when the quantity produced is incremented by one unit, while "average cost" is the total cost divided by the number of units produced. They are distinct concepts used for different analytical purposes.

What's the difference between "marginal cost" and "variable cost"?

"Marginal cost" is the cost of producing one additional unit, while "variable cost" is the total cost that varies with the level of output. Marginal cost can be seen as the change in variable cost from producing one more unit.