Marginal costs
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Marginal costs, sometimes called shadow prices, measure the effect that the binding constraints have on the cost of a least cost ration.  In the example below, an extra megaJoule of energy would cost £0.1151 for every 10 rations.  Experienced formulators pay great attention to marginal costs, particularly those associated with minerals. A high value indicates that no cheap source is being made available.

 
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Last modified: 03/04/08