Because of increasing sales at Dylan's Bakery, Dylan hired another worker. The new baker was very skilled, but the workspace in Dylan's store is small and they found themselves getting in each other's way. Sales then declined. Dylan's Bakery is experiencing negative returns.

Question

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The decline in sales despite hiring a skilled worker due to limited workspace leading to inefficiency exemplifies negative returns, where additional inputs result in lower output or productivity.

Because of Increasing Sales at Dylan's Bakery, Dylan Hired Another