marginal cost

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Noun1.marginal cost - the increase or decrease in costs as a result of one more or one less unit of output
monetary value, price, cost - the property of having material worth (often indicated by the amount of money something would bring if sold); "the fluctuating monetary value of gold and silver"; "he puts a high price on his services"; "he couldn't calculate the cost of the collection"
References in periodicals archive ?
As long as OPEC's output restrictions and expansion of cheap Middle Eastern oilfields sheltered Western oil companies from marginal-cost pricing, such complacency was understandable.
Baumol cautions antitrust authorities against jumping to the conclusion that departures from marginal-cost pricing are necessarily evidence of monopoly power.
Toward the end of his Comment Larson reproduces and states as "well known" our list of the necessary conditions for the optimality of the ECPR: (1) the monopolist's price for the complementary service has been based on a marginal-cost pricing rule; (2) the monopolist's and rival producer's components are perfect substitutes; (3) the production technology of the component experiences constant returns to scale; (4) the rival producer has no market power; and (5) the monopolist's marginal cost of production of the component can be accurately observed.