Margin (economics)

In economics, a margin is a set of constraints conceptualised as a border.[1] A marginal change is the change associated with a relaxation or tightening of constraints — either change of the constraints, or a change in response to this change of the constraints.

This article is about a concept of economic theory. For the financial term, see margin (finance).

The concept of a margin as the price point at a transaction boundary in a market is central to marginal utility[1] and the law of diminishing marginal utility. The concept of margin is used in economics to describe the addition of one added unit to the cost and revenue.

See also

References
  1. Wicksteed, Philip Henry (1910). The Common Sense of Political Economy, Including a Study of the Human Basis of Economic Law. Macmillan and Company. p. Bk I Ch 2 and elsewhere (page 4 at econlib.org transcription). Only at the margin is there a coincidence between the thing gained and the price paid for it.
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