Marginal cost is the cost incurred when producing one additional unit. Marginal cost is the extra money a business spends to make just one more product. It's a key concept that helps companies ...

The marginal cost of production is calculated by dividing the change in the total cost by a one-unit change in the production output level. The calculation determines the cost of production for ...

In other words, the cost of holding the unit is figured into this equation ... There is no magic formula here. The logic expressed is to compare your equipment costs to how a rental company ...