Margin is commonly defined as:

• A. A border or edge
• B. A margin note in a document
• C. The difference between the cost of production and the amount at which it is sold
• D. The extra amount left after subtraction

Answer: (C)

Margin in business vocabulary is the amount that remains after subtracting the cost of producing something from the price at which it’s sold. This captures the profit earned per unit and is a standard measure of profitability. That’s why the best definition is the difference between production cost and selling price. For example, if making a product costs 50 and you sell it for 80, the margin is 30. Other uses exist in different contexts, like a border or note in a document, or the general idea of a leftover amount after subtraction, but in everyday business language the margin refers to the profit gap between cost and selling price.