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marginal cost
(redirected from differential cost)

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marginal cost

The cost of producing an extra unit of output. For example, if a bakery increased its production from 10,000 loaves a day to 11,000 loaves a day, and its costs increased from £2,000 to £2,100, then the marginal cost of the extra 1,000 loaves would be £100. So the marginal cost of a loaf would be 10p.



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