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Marginal

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Definition of Marginal

Marginal Image 1

Marginal

Incremental.



Related Terms:

Marginal tax rate

The tax rate that would have to be paid on any additional dollars of taxable income earned.


Marginal cost

The cost of producing one extra unit.


Marginal cost

The incremental change in the unit cost of a product as a result of a
change in the volume of its production.


marginal tax rate

Additional taxes owed per dollar of additional income.


Marginal Propensity to Consume

Fraction of an increase in disposable income that is spent on consumption.


Marginal Propensity to Import

Fraction of an increase in disposable income that is spent on imports.


Marginal Propensity to Save

Fraction of an increase in disposable income that is saved.


Marginal Image 2

Marginal Tax Rate

Percent of an increase in income paid in tax.


Economies of scale

The decrease in the marginal cost of production as a plant's scale of operations increases.


Average Propensity to Consume

Ratio of consumption to disposable income. See also marginal propensity to consume.


Average Propensity to Save

Ratio of saving to disposable income. See also marginal propensity to save.


MPC

See marginal propensity to consume.


Net Present Value (NPV) Method

A method of ranking investment proposals. NPV is equal to the present value of the future returns, discounted at the marginal cost of capital, minus the present value of the cost of the investment.


 

 

 

 

 

 

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