4.12 Michelles business produces ceramic cups using labor, clay, and a kiln. She can manufacture 25 cups

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4.12 Michelle’s business produces ceramic cups using labor, clay, and a kiln. She can manufacture 25 cups a day with one worker and 35 cups with two workers.

Does her production process illustrate diminishing returns to scale or diminishing marginal returns to scale? Give a plausible explanation for why output does not increase proportionately with the number of workers.

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Microeconomics With Calculus

ISBN: 9780273789987

3rd Global Edition

Authors: Jeffrey M. Perloff

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