TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

EXTRA COST PRODUCTION [4 records]

Record 1 2001-09-10

English

Subject field(s)
  • Pricing Theory
DEF

Fixing the selling price of additional units with reference to the marginal cost of manufacturing the unit ...

OBS

The theory of marginal pricing is that, after a company's total fixed and variable costs have been covered by the existing volume of production, the cost of producing an extra unit of production, ie marginal production, will only be the total variable cost of producing and selling that unit. In such circumstances, the selling prices of additional units could be reduced, if necessary, to match the total variable cost without any loss of profit to the company. Any amount by which the selling price exceeds the variable cost of marginal output could then be an extra or marginal contribution to the company's net profits or cash flow.

French

Domaine(s)
  • Théorie des prix

Spanish

Campo(s) temático(s)
  • Teoría de fijación de precios
Key term(s)
  • fijación de precios por costes marginales
  • fijación de precios por al coste marginal
  • fijación de precios conforme al costo marginal
  • fijación de precios de acuerdo con el costo marginal
Save record 1

Record 2 1981-01-27

English

Subject field(s)
  • Cost Accounting
  • Productivity and Profitability
OBS

Anyone with a somewhat distinctive commodity may try by advertising to increase the demand for his product and, by restricting supply, to raise price above his extra costs of production.

French

Domaine(s)
  • Comptabilité analytique
  • Productivité et rentabilité

Spanish

Save record 2

Record 3 1981-01-27

English

Subject field(s)
  • Economics
OBS

There are still gains from trade; but because of diminishing returns and increasing costs, there is not so much specialization as before and not quite such large gains. Note that at the equilibrium point, where no further trade is possible, relative (extra, or "marginal") production costs in the two countries are equal (...)

French

Domaine(s)
  • Économique

Spanish

Save record 3

Record 4 1981-01-23

English

Subject field(s)
  • Laws of the Market (Economy)
  • Productivity and Profitability
OBS

He will point out that in a competitive industry each firm would have already expanded its output to where the extra cost of producing a unit of output has begun to turn up. This would be because each competitive producer has no fear of spoiling his own market and has every incentive to expand his production through and beyond the decreasing-cost stage.

French

Domaine(s)
  • Lois du marché (Économie)
  • Productivité et rentabilité

Spanish

Save record 4

Copyright notice for the TERMIUM Plus® data bank

© Public Services and Procurement Canada, 2025
TERMIUM Plus®, the Government of Canada's terminology and linguistic data bank
A product of the Translation Bureau

Features

Language Portal of Canada

Access a collection of Canadian resources on all aspects of English and French, including quizzes.

Writing tools

The Language Portal’s writing tools have a new look! Easy to consult, they give you access to a wealth of information that will help you write better in English and French.

Glossaries and vocabularies

Access Translation Bureau glossaries and vocabularies.

Date Modified: