Town 1 Town 2 30 30 ME, ME, Labor Supply 27 27 24 24 21 21 Labor Supply 18 18 15 12 12 6. Labor Demand Labor Demand 12 3 4S 6 7 LABOR (Hours) 10 2 10 LABOR (Hours) Complete the following table with...

Extracted text: Town 1 Town 2 30 30 ME, ME, Labor Supply 27 27 24 24 21 21 Labor Supply 18 18 15 12 12 6. Labor Demand Labor Demand 12 3 4S 6 7 LABOR (Hours) 10 2 10 LABOR (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 1 Town 2 Labor 3 hours v 3 hours v Wage $10.50 V $9.00 In Town 1, the salon pays a wage that is the marginal value product of the final unit of labor hired, whereas In Town 2, the wage is v the marglnal value product of the final unit of labor hired. The outcome in is closer to that of a competitive market, glven that the supply of labor IsM elastic (at the market equilibrium) with respect to changes in the wage.