Cost Curve

Cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms use these curves to obtain the optimal point regarding production and income maximizing firms can use them to make a decision output quantities to attain those aims. There are many types of cost curves, all related together, including total in addition to average cost curve, and marginal cost curves, which are corresponding to the differential in the total cost curve.