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Economics is more than just the study of charts, graphs, and detailed tables consisting of statistics and numbers, it explains an individual’s rational behavior in fulfilling their needs and wants. Economic exist as a means to understand how individuals and countries respond to limited resources whilst having unlimited wants. Adam Smith, also known as the “father of economics” focused on the study of why some nations prosper and other nations suffer in poverty. The allocation of resources is a determinant that contributes to a country’s wealth various classes in a society. Simply put, economics is not only a social science that studies man’s behaviors based on their interest, but it also involves the study of wealth. In describing the relationship between the number of inputs and the law of diminishing marginal productivity Economist and business owners consider variable inputs, labor, and the overall product produced. These factors are based on the law of diminishing returns which happens when the return on production decreases after a specific level of labor is reached. The law of diminishing marginal productivity and diminishing returns are factors used by employers when making a decision on which activities to produce (marginal product), production schedules, and how many workers are required to complete the final product. The Long Run and Short Run decisions also factor into what the firm chooses as a least expensive method of producing from all available methods. In the Long Run decision firms look at costs of various inputs and the technologies available for combining these inputs, and then decide which combination offers the lowest cost. The Short Run decision, mostly fixed variables, limits the firm’s production decisions. Business owners place a tremendous amount of focus on cost and ways to lower them as part of their daily efforts in