Town 1 Town 2 30 ME Labor Supply 27 27 24 21 21 Labor Supply 18 18 15 Labor Demand Labor Demand 1. 6 10 6. 10 LABOR (Hours) LABOR (Hours) Complete the following table with the profit-maximizing quantity of labor each salon will hire, along with the wage it will pay for each hour of labor. Town 1 Town 2 Labor 3 hours v 3 hours Wage $10.50 V $9.00 In Town 1, the salon pays a wage that is v the marginal value product of the final unit of labor hired, whereas in Town 2, the wage is v the marginal value product of the final unit of labor hired. The outcome In v Is closer to that of a competitive market, glven that the supply of labor Is v elastic (at the market equilibrium) with respect to changes in the wage.
Town 1 Town 2 30 ME Labor Supply 27 27 24 21 21 Labor Supply 18 18 15 Labor Demand Labor Demand 1. 6 10 6. 10 LABOR (Hours) LABOR (Hours) Complete the following table with the profit-maximizing quantity of labor each salon will hire, along with the wage it will pay for each hour of labor. Town 1 Town 2 Labor 3 hours v 3 hours Wage $10.50 V $9.00 In Town 1, the salon pays a wage that is v the marginal value product of the final unit of labor hired, whereas in Town 2, the wage is v the marginal value product of the final unit of labor hired. The outcome In v Is closer to that of a competitive market, glven that the supply of labor Is v elastic (at the market equilibrium) with respect to changes in the wage.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter19: Earnings And Discrimination
Section: Chapter Questions
Problem 8PA
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