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Economic Definition of MFC. Defined.

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Term MFC Definition: The abbreviation for marginal factor cost, which is the change in total factor cost resulting from a change in the quantity of factor input, found by dividing the change in total factor cost by the change in quantity of factor input. Marginal factor cost indicates how a firm's total factor cost is affected by hiring one more or one fewer worker. Two related concepts are total factor cost and average factor cost.

 

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