Economics A-Level
Marginal cost
What Marginal cost means in Economics A-Level, as defined for AQA.
Definitions of Marginal cost
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Reference: AQA
The cost of producing an additional unit; if it exceeds marginal revenue, the last unit cost more to produce than it generated in revenue.
The addition to total cost from producing one extra unit, calculated as the change in Total Cost divided by the change in quantity.
The addition to total cost from producing one more unit, compared with marginal revenue when deciding whether to change output.
The cost of producing one additional unit of output, calculated as the change in total cost divided by the change in quantity.
Topics that use Marginal cost
- Costs of production (AQA A-Level)
- The objectives of firms (AQA A-Level)
Related terms
- Profit maximisation
- Bounded rationality
- Business objectives
- Corporate governance
- Corporate social responsibility
- Cost curve geometry
- Diminishing marginal returns
- Economies of scale
Using Marginal cost in the exam
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