NOUN
- the increase or decrease in costs as a result of one more or one less unit of output
How To Use differential cost In A Sentence
- This paper attempts to explain the cause of the volatility in asset prices. The key element in our explanation is the differential cost of internal and external funds that investors face.
- In general, the borrowing rate is higher than the lending rate, even though with homogeneous information, investors' demand for risky assets differs due to the differential cost of funds.
