2.6 The following table represents data for Sally’s Salon.

Draw a graph showing the total product, marginal product of labor, and average product of labor. Identify where increasing returns, diminishing returns, and negative returns set in on the total product curve.

Labor Units

(Employees)

Total Product

(Haircuts Per Day)

Marginal Product of Labor Average Product of Labor 0 0 - -

1 7 7 7.00 2 17 10 8.50 3 31 14 10.33 4 44 13 11.00 5 55 11 11.00 6 64 9 10.67 7 69 5 9.86 8 69 0 8.63 9 65 -4 7.22 10 59 −6 5.90