marginal value

Definition

The incremental value that is achieved through additional output. Marginal value exists through a product modification that results in an increase in price or an increase in unit production. The value is calculated by subtracting additional input costs from the unit price of the additional output.

Use marginal value in a sentence

  • Our marginal value was good and I told my son all about it so he would understand it in the future.

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  • The company managed to increase their marginal value by boosting worker's productivity; in this way, they were able to generate additional units of product while minimizing their additional labor costs.

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  • The marginal value was increasing steadily as the economy of scale was being realized for our new project that uses our new equipment.

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