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TeachMeFinance.com - explain Marginal Cost marginal cost -- Additional cost associated with producing one more unit of output. another definition... Marginal Cost -- The increase in the total costs of a producer of producing one more unit of output, or the decrease in producing one less unit of output. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.