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marginal cost

   Also found in: Medical, Financial, Acronyms, Encyclopedia, Wikipedia 0.02 sec.
n.1.(Economics) The increase in total cost of production as a result of producing one more unit of output; since certain ovrhead costs are fixed, the marginal cost is almost aways less than the total per-unit cost of production averaged over all units produced.
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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"


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Variable costs refer to the marginal cost of producing a chip, excluding capital investments and other fixed costs.
One of the benefits of outsourcing projects is that once the initial capital investment is made there is only a marginal cost to bolting on new business or customers.
It's a revenue stream that's almost pure profit, since the marginal cost of transporting a free passenger is basically a can of soda, a bag of peanuts, and the incremental fuel cost--a little less than 3 cents a mile at current prices, or about $38 for a round trip between Chicago and New York.
 
 
 
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