Water-Energy Nexus

Marginal Cost

The cost to produce the next increment of a product or service. When used in water and energy resource planning, it is typically expressed as the incremental cost in $/unit to produce and/or deliver the next (marginal) resource, whether a gallon of water supply, a kilowatt or kilowatt-hour of electricity, or a therm of natural

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Marginal Supply

The last unit of supply needed to meet demand for a product or service. On a short‐run basis, the marginal supply is typically the last unit of resource – whether a water supply resource, a kilowatt hour, or a therm – used to meet demand. On a long‐run basis, the marginal supply is typically the

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