The world of microeconomics and business decision-making hinges upon a key concept: marginal cost. In the simplest terms, marginal cost represents the expense incurred to produce an additional unit of ...

Incremental cost is an important calculation for understanding numbers at different levels of scale. The calculation is used to display change in cost as production rises. If you manufacture one unit ...

Marginal benefit and marginal cost are two measures of how the cost or value of a product changes. Marginal benefit impacts the customer, while marginal cost impacts the producer. Companies need to ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Marginal efficiency of capital (MEC) is the discount rate at which the present value of the future yields from a capital asset are equal to its cost of acquisition. The idea behind computing the MEC ...