$15 is the marginal cost of the 2nd gigaplot at jimmy's gigaplot factory.
The marginal fee refers to the growth in manufacturing expenses generated through the production of extra product devices. it's also referred to as the marginal fee of production. Calculating the marginal value permits companies to peer how volume output influences cost and therefore, in the long run, income.
The marginal value of production is used to degree the trade inside the fee of a product resulting from the production of an extra unit of output. when the business enterprise reaches the top-rated manufacturing level, producing additional units will increase the cost of production in keeping with the unit. Marginal cost is the brought price to provide a further properly.
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