Analyzing Production Efficiency
A small workshop has a fixed number of tools and machines. The manager observes that when the second employee was hired, the total daily output of widgets increased by 50 units. However, when the fifth employee was hired, the total daily output increased by only 15 units. Assuming all employees have the same level of skill and work ethic, explain the most likely reason why the addition of the fifth employee resulted in a smaller increase in output compared to the second.
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