Case B8Diminishing returns in the bread shopIs the baker using his loaf?Just up the road from where
Case B8Diminishing returns in the bread shopIs the baker using his loaf?Just up the road from where I live is a bread shop. Like many others, I often buy my bread there on a Saturday morning. Not surprisingly, Saturday morning is the busiest time of the week for the shop and as a result it takes on extra assistants.During the week only one assistant serves the customers, but on a Saturday morning there used to be five serving. But could they serve five times as many customers? No, they could not. There were diminishing returns to labour.The trouble is that certain factors of production in the shop are fixed:
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