Glossary · Micro · Economic foundations

Marginal cost (MC)

The extra cost of producing one more unit. For a firm it is the change in total cost divided by the change in output, and it usually rises as output grows because each extra worker adds less.

Also called: MC

Taught in: Marginal Benefit vs Marginal Cost

Related terms

Marginal benefit (MB)Average total cost (ATC)MR = MC rule

More from economic foundations

Accounting costCapitalCommand economyEconomic costEconomic profitEntrepreneurshipFactors of productionIncreasing opportunity cost

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