Business, Legal & Accounting Glossary
The value gained from either consuming or producing one additional unit of a product or service.
Marginal Value is the incremental value that is achieved through additional output. It occurs through a product modification that results in an increase in price or unit production.
Marginal value is calculated by subtracting additional input costs from the unit price of the additional output.
The value gained from either consuming or producing one additional unit of a product or service.
The company were able to increase their marginal value by introducing initiatives that we responsible for enhancing worker’s productivity; in this way, they were able to generate additional units of their products while minimising additional labour costs.
In economics ‘marginal’ always refers to the last or ‘incremental’ unit. Marginal value is the value to a consumer of the last unit of consumption. In an industry demand curve it is the value of the good to the consumer who bought the good but receives the lowest value from consumption. That is, the value to the consumer of the first unit that would no longer be purchased if the price rose.
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This glossary post was last updated: 7th January, 2022 | 0 Views.