We may also obtain the incremental cost curve from the heat rate curve.

This can be illustrated by graphing the short run total cost curve and the short run variable cost curve.

The long-run marginal cost curve tends to be flatter than its short-run counterpart due to increased input flexibility as to cost minimization.

An ideal cost curve assumes technical efficiency, since a firm always has an incentive to be as technical efficient as possible.

A cost curve can be plotted, with cost on the y-axis and quantity on the x-axis.