Problem
Michelle's business produces ceramic cups using labor, clay, and a kiln. She can manufacture 25 cups a day with one worker and 35 with two workers. Does her production process necessarily illustrate decreasing returns to scale or diminishing marginal returns to labor? What is the likely explanation for why output doesn't increase proportionately with the number of workers?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.