The increase or decrease in a firm's total cost of production as a result of changing production by one unit. Bloomberg Financial Dictionary
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The additional cost of one extra unit of production, e.g. the leather and labour needed to produce an extra pair of shoes. In contrast with fixed costs such as buildings and machinery that do not change no matter how much is produced. Also known as Incremental Cost.
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marginal cost UK US noun [C] ACCOUNTING, ECONOMICS, PRODUCTION
► the cost of producing one more item, etc. compared to the cost of producing all items so far: »
The marginal cost to a bank of a transaction over the internet is a mere cent.
Financial and business terms. 2012.