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You are interested in accumulating $10,000 so that you can take a cruise in 3 years. If you trying to solve for the amount that you need to invest each year, earning 6% interest compounded annually, the $10,000 represents:
Total Product Curve
The total product curve illustrates the relationship between the quantity of inputs used in production and the quantity of output produced, demonstrating the law of diminishing returns.
Variable Input
A production input whose quantity can be changed in the short term to adjust the level of output.
Marginal Product Curve
The marginal product curve depicts the change in output resulting from employing one more unit of a specific input, holding all other inputs constant, and typically features phases of increasing, constant, and diminishing marginal returns.
Fixed Input
A resource or input in the production process that remains unchanged regardless of the level of output or production.
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