Coffee Shop Productivity Puzzle
A small coffee shop has one high-capacity espresso machine. The owner observes that as they hire more baristas, the total number of coffees sold per day increases. However, they also notice that after hiring the fourth barista, the average number of coffees made per barista each day begins to fall. In your own words, explain the economic principle that describes this phenomenon, focusing on why the average output per worker decreases even when total output is still rising.
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The Economy 1.0 @ CORE Econ
Ch.1 The Capitalist Revolution - The Economy 1.0 @ CORE Econ
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Introduction to Microeconomics Course
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