Economics, 3rd Edition

marginal abatement cost 

the cost expressed in terms of the 

last unit of pollution not emitted (abated) 

marginal changes 

small incremental adjustments to a plan of 

action

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GLOSSARY  809

marginal cost 

the increase in total cost that arises from an 

extra unit of production

marginal product 

the increase in output that arises from an 

additional unit of input

marginal product of labour 

the increase in the amount of 

output from an additional unit of labour

marginal propensity to consume 

the fraction of extra 

income that a household consumes rather than saves

marginal propensity to save 

the fraction of extra income 

that a household saves rather than consumes