Submit Feedback. In the mid-20th century, proponents of the ideal of perfect competition—a scenario in which firms produce nearly identical products and charge the same price—favoured the efficiency inherent in the concept of marginal-cost pricing. Keep Exploring Britannica Education. Article History.
Theory of Consumer Behavior. Analyzing Unit Cost A unit cost is the total expenditure incurred by a company to produce, store and sell one unit of a particular product or service. Marginal cost of production includes all of the costs that vary with the level of production. Definition and Explanation of Economics. This is because at some point, the benefit of producing one additional unit and generating revenue from that item will bring the overall cost of producing the product line down.
Price, the amount of money that has to be paid to acquire a given product.marginal cost
Whole Life Insurance. Edit Mode. Various Revenue Concepts. The marginal cost of adding additional sticks of RAM in the new Dell laptops, far outweighs the usefulness that the consumer will see in the performance.
Insofar as the amount people are prepared to pay for a product represents its value, price is also a measure of value.
Commercial Policy. There was a problem with your submission. Education, discipline that is concerned with methods of teaching and learning in schools or school-like…. Learn More in these related Britannica articles: For example, if a company needs to build a new factory in order to produce more goods, the cost of building the factory is a marginal cost.
Theories of Economic Growth. Scale of Production.
Balance of Payments.