Marginal producer

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Marginal producer is the producer who would be eliminated from competition by a drop in the market price or a rise in his production costs because his production costs are the nearest (at the margin) to the current market price. A marginal producer operates at little or no profit so that any unfavorable change in price or costs would make his further operation unprofitable.[1]


  1. Percy L. Greaves, Jr. "Mises Made Easier ", 1974. Referenced 2014-07-19.