Short Run Production And Negative Marginal Returns
What is the most likely effect on the short-run production curve when a typical coffee shop employs 20 workers during a single shift, and what explains this outcome?
A
Output increases slightly, because short-run production principles state that marginal improvements become negligible after 15 workers.
B
Output triples, because short-run production models dictate that output multiplies for every six additional workers.
C
Output is near zero, because the excessive number of workers overcrowds the fixed capital and severely hinders production.
D
Output increases dramatically, because total production consistently rises as the quantity of labor increases.