Vähennyskustannus

Vähennyskustannus, known in English as the marginal cost, refers to the additional cost incurred by a producer when they increase their output by one unit. It is a fundamental concept in microeconomics and is calculated by dividing the change in total cost by the change in quantity produced. Understanding marginal cost is crucial for businesses to make optimal production decisions.

When a company produces more goods or services, its total costs will inevitably rise. Marginal cost specifically isolates the cost of that one extra unit. This cost can fluctuate based on the existing production level. Initially, as production increases, marginal cost might decrease due to economies of scale or increased efficiency. However, beyond a certain point, as production continues to grow, marginal cost typically begins to rise. This is often due to factors like diminishing returns, where adding more variable inputs (like labor) to fixed inputs (like machinery) becomes less efficient.

Businesses use the concept of marginal cost to determine the most profitable level of output. The general principle is to increase production as long as the revenue generated by selling an additional unit (marginal revenue) is greater than the cost of producing that unit (marginal cost). Production should be increased up to the point where marginal cost equals marginal revenue. If marginal cost exceeds marginal revenue, producing more would lead to a loss on that extra unit, and the company should consider reducing output. Conversely, if marginal revenue is higher than marginal cost, producing more would be profitable.