Absolute (Money) Price

Marginal Benefits Additional benefits;
the benefits connected with consuming an
additional unit of a good or undertaking one
more unit of an activity.
Marginal Cost (MC) The change in total
cost that results from a change in output:
MC 5 ΔTC/ΔQ.
Marginal Costs Additional costs; the costs
connected with consuming an additional
unit of a good or undertaking one more unit
of an activity.
Marginal Factor Cost (MFC) The
additional cost incurred by employing an
additional factor unit.
Marginal (Income) Tax Rate The change
in a person’s tax payment divided by the
change in taxable income: DTax payment 4
DTaxable income.
Marginal Physical Product (MPP) The
change in output that results from changing
the variable input by one unit, holding all
other inputs fixed.
Marginal Productivity Theory Firms
in competitive or perfect product and factor
markets pay factors their marginal revenue
products.
Marginal Propensity to Consume
(MPC) The ratio of the change in consumption to the change in disposable income:
MPC 5 ΔC/ΔY
d .
Marginal Propensity to Save (MPS) The
ratio of the change in saving to the change in
disposable income: MPS 5 ΔS/ΔYd.