Paraphrase this text : Microeconomics is a social science that studies the implications of people's actions, specifically regarding how those decisions affect the utilization and distribution of scarceresources. It shows how and why different goods have different values. How individualsmake more efficient and more productive decisions and basically how individuals best coordinate and cooperate with one another. This relates to "The law of diminishing returns" because it can be utilized to make efforts more efficient and investments to yield higher return. The law of diminishing returns covers how the marginal physical product of variable input declines as more of it is employed with a given quantity of other inputs. Basically, used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested. When we create goods or services we must account for total cost. Total cost accounts for the market value of all resources used in production or consumption to create the service or goods. We can better account for production costs efficiently, knowing this allows us to maximize total profits when it comes to pricing goods or services. Total costs can include both fixed and variable costs. Average total costs can be determined by dividing cost by quantity produced by blocks of time, this will give you an average of output in that increment of time. The goal in producing a goods or service is to maximize profit