Town 1Town 23030ME,ME,Labor Supply272724242121Labor Supply18181512126.Labor DemandLabor Demand12 34S 6 7LABOR (Hours)10210LABOR (Hours)Complete the following table with the profit-maximizing quantity of labor each salon wil hire, along with the wage it wil pay for each hour of labor.Town 1Town 2Labor3 hours v3 hours vWage$10.50 V$9.00In Town 1, the salon pays a wage that isthe marginal value product of the final unit of labor hired, whereas In Town 2, thewage isv the marglnal value product of the final unit of labor hired.The outcome inis closer to that of a competitive market, glven that the supply of labor IsM elastic (at the market equilibrium) withrespect to changes in the wage.

Given : Town 1 and Town 2's labor supply and labor demand is given. Table of profit maximization…

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 Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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