Marginal cost
What Marginal cost means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Marginal cost
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Reference: Pearson Edexcel
The change in total cost from producing one extra unit, compared with marginal revenue when deciding whether to increase output.
The change in total cost divided by the change in quantity, measuring the impact of producing one additional unit of output.
The cost of producing one extra unit, considering only the variable cost of the next unit rather than fixed costs.
Topics that use Marginal cost
- Appendix 3: Quantitative skills (Pearson Edexcel A-Level)
- Business objectives and pricing decisions (Pearson Edexcel A-Level)
Related terms
- Average cost
- Base year
- Contribution per unit
- Cross elasticity of demand
- Data interpretation
- Fraction
- Income elasticity of demand
- Index numbers
Using Marginal cost in the exam
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