1. A friend of yours owns a hairdressing salon. At first she had only one hairdresser. While her costs were down, she had many unsatisfied customers who had to go home without getting their hair done. So she hired four more hairdressers. This dramatically improves how many customers she can serve at a time. Seeing the productivity improvement, she decided to hire 20 more hairdressers, but found out that productivity never improved beyond the level when there were only 5 (profits did not improve either). In fact, productivity started to decrease. Your friend comes to you for help. From your knowledge of economics, could you explain what went wrong to your friend in detail? Also, what options does she have to become productive again?