Share This Article:

Economic Definition of marginal factor cost curve. Defined.

Offline Version: PDF

Term marginal factor cost curve Definition: A curve that graphically represents the relation between factor quantity and the marginal factor cost incurred by a firm for buying or hiring a factor of production. Marginal factor cost curve indicates how a firm's total factor cost is affected by hiring one more or one fewer worker. This curve is constructed to capture the relation between marginal factor cost and the factor quantity, holding other variables constant.

 

« marginal factor cost and average factor cost | monopsony marginal factor cost curve »

Permalink: https://glossary.econguru.com/economic-term/marginal+factor+cost+curve

Alphabetical Reference to Over 2,000 Economic Terms