Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee. a. Adding more and more workers does not constantly increase production because of _______ SELECT THE CORRECT ANSWER  different productivity levels between various laborers. diminishing marginal costs. diminishing marginal product of labor. substitutes in production.

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A:

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