marginal cost

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marginal cost

An actuarial term referring to the additional cost required to produce an additional unit of benefit (e.g., unit of health outcome).
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The implied marginal cost of capital schedule (given the series of breakpoints based on the available retained earnings and four debt limits from the banks) is presented in Exhibit 1.
Such a situation arises if the value of waiting is higher than the NPV of starting the project today, possibly because the marginal cost of capital, k, is likely to be lower tomorrow.
To do this, the firm has to be able to show at the margin that its return on investment exceeds its marginal cost of capital.