# What is cost and cost function?

**cost function**is a

**function**of input prices and output quantity whose value is the

**cost**of making that output given those input prices, often applied through the use of the

**cost**curve by companies to minimize

**cost**and maximize production efficiency.

Consequently, what is the meaning of cost function?

Definition: A **cost function** is a mathematical formula used to used to chart how production expenses will change at different output levels. In other words, it estimates the total **cost** of production given a specific quantity produced.

Beside above, what is the formula of cost? The **formula** to calculate total **cost** is the following: TC (total **cost**) = TFC (total fixed **cost**) + TVC (total variable **cost**).

Thereof, what is the average cost function?

To find the **average cost**, you will simply divide the total **cost** by the total number of units produced. To find the marginal **cost**, you will find the total **cost** for the unit and subtract from it the total **cost** for producing one fewer units. Now let's see how you would actually use the **function**.

What are the different cost functions?

**Types** of **Cost Functions** Typical **cost functions** are either linear, quadratic and cubic. Total **cost function** is the most fundamental output-**cost** relationship because **functions** for other **costs** such as variable **cost**, average variable **cost** and marginal **cost**, etc.