Marginal change refers to a small, incremental adjustment or difference in a variable, typically in the context of economics, business, or decision-making. It represents the change in outcome (e.g., cost, revenue, utility) resulting from a one-unit increase or decrease in an input, such as producing one more unit of a product or consuming one additional unit of a good.
For example:
- In economics, marginal cost is the additional cost incurred by producing one more unit of output.
- Marginal benefit is the additional benefit gained from consuming or producing one more unit.
It’s a key concept in analyzing decisions, as it helps determine whether the additional benefit of an action outweighs the additional cost.
