marginal cost

…idea in economic analysis is marginal cost, or the extra cost of producing an additional unit. A business that wants to maximize its profit will continue making products until the cost of making an additional unit (marginal cost) equals the additional profit from selling it (marginal revenue).

…originally tested the theory that marginal cost—the addition to total cost resulting from an increase in output—first declines as production expands but ultimately begins to rise. Econometric studies, however, indicate that marginal cost tends to remain more or less constant.

…marginal variable cost, or simply marginal cost [MC(y)] is, roughly, the increase in variable cost incurred when output is increased by one unit; i.e., MC(y) = VC(y + 1) - VC(y). Though for theoretical purposes a more precise definition can be obtained by regarding VC(y) as a continuous function of…

…number of units produced) and marginal cost (the marginal cost of a given unit of output is the increase in the total cost required to produce that unit).