Cost Function (control Theory)
Cost function *In economics, the cost curve, expressing production costs in terms of the amount produced. *In mathematical optimization, the loss function In mathematical optimization and decision theory, a loss function or cost function (sometimes also called an error function) is a function that maps an event or values of one or more variables onto a real number intuitively representing some "co ...

Cost Curve
In economics, a 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 optimize their production process by minimizing cost consistent with each possible level of production, and the result is a cost curve. Profit-maximizing firms use cost curves to decide output quantities. There are various types of cost curves, all related to each other, including total and average cost curves; marginal ("for each additional unit") cost curves, which are equal to the differential of the total cost curves; and variable cost curves. Some are applicable to the short run, others to the long run. Notation There are standard acronyms for each cost concept, expressed in terms of the following descriptors: *SR = short-run (when the amount of physical capital cannot be adjusted) *LR = long-run (when all input amounts can be adjusted) *A = average (per unit of output) *M = marginal (for an additional unit of ...
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