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People often report an annoying memory failure when they walk from one end of the house to the other for something and then forget what they went to retrieve when they reach their destination.As soon as they return to the first room,they are reminded of what they wanted in the first place.This common experience best illustrates the principle of
Supply Curve
A graph displaying the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to provide, holding all else equal.
Diminishing Marginal Product
A principle stating that as more of a variable input is added to a fixed input, the additional output produced from each additional unit of the variable input eventually decreases.
Marginal Costs
The supplementary cost arising from the manufacture of an extra unit of a good or service.
Variable Inputs
Inputs that can be adjusted in the short term to alter the level of output in the production process.
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