Quadratic Cost Function

A quadratic cost function is a mathematical way to represent costs that change in a certain pattern, typically seen in economics and business. It looks like a "U" shape on a graph. This means that when you increase production, costs initially rise slowly but start to increase more rapidly as production continues. This reflects real-world situations where producing too much leads to inefficiencies, higher resource use, and increased expenses. Understanding this helps businesses find the optimal production level to minimize costs while still meeting demand.