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Sal owns a bakery in a building with a fixed amount of space. Sal buys baking ingredients and hires workers to help bake. In the
Sal owns a bakery in a building with a fixed amount of space. Sal buys baking ingredients and hires workers to help bake. In the short run, Sal's bakery: will not experience diminishing marginal return to labor if Sal hires more and more workers. might experience diminishing marginal returns to labor if Sal hires more and more workers. will not experience diminishing marginal returns to labor because Sal can buy as much of the baking ingredients as he needs. will eventually experience diminishing marginal returns to labor if Sal hires more and more workers
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