Lettuce Eat, a vegetarian cafe, exhibits diminishing returns to labour.If the cost of each meal is constant and labour is the only other input, then the total cost-curve will:

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Diminishing returns to labour implies that as more labour is added, the marginal product of labour decreases, which in turn increases the marginal cost of production. This leads to a steeper total cost curve as meal production increases.

Lettuce Eat, a Vegetarian Cafe, Exhibits Diminishing Returns to Labour