Terance can remember only the first two items and the last two items on the grocery list that his wife just read to him over the phone. The other five items in between are gone. This is an example of the .

This is an example of recency and primacy bias.

Explanation:

What happened to Terrence is a pretty common occurrence to people who tend to remember things on a list with some form of difficulty as they usually only retain the things in the first part or the end of the list they are being narrated.

This is due to the attention spans of the people who are receiving the information from the other person.

When the person only remembers the first part of any information they are paying more attention in the beginning and this is known as primacy bias.

When the person only retains what they heard the last it is known as recency bias

marginal cost is a microeconomic measure that us to evaluate the extent to which the level of production of a good is sustainable in accounting, that is, to how many quantities the company plans to profit from the production of the good.

the concept of marginal cost is simple, it means the cost of producing one more item. for example, in the case of pies, the marginal cost is the cost of producing one more pie than those that have already been produced.

it is important to understand that productive activity influences marginal cost. the marginal cost of some goods can be very high, while others may be insignificant. for example, the marginal cost of producing an extra plane is very high. already the marginal cost of a water company to provide 1l more water is derisory.

in the case of pies, the cost involves the inputs, the labor and the fixed cost, which involves the fixed space of the bakery. the level of production initially has the marginal cost decreasing because there is space and manpower available. however, to produce more you have to hire more workers and buy more inputs. if physical space is limited, workers will conflict with places, inputs and their productivity will decrease, meaning there is an optimum point of production for each level of space and manpower. from this point on, the productivity of the workers will be getting smaller because of lack of space, so that the marginal cost of producing one more pie will be increasing. so, although you have not posted the chart, but if you have the answer, you can see that my explanation goes according to the marginal cost curve that will increase from the 4th pie, answer (c).