Question 2: Labor Demand The following table shows the relationship between the number of workers and production at Pedro's smoothie shop. Because smoothies are perfect substitutes for other beverages, this market is perfectly competitive with a price of $6. a. Complete the remaining columns of the table. Workers per Production Marginal Total Marginal Shift Product of Revenue (55} Revenue Product of b. Shifts are 8 hours long. How many workers will Pedro hire if the market wage is $16 an hour? c. Now, imagine that smoothies are not perfect substitutes for other beverages, and therefore Pedro has market power to Set the price of his smoothies. Without doing any more calculations, will labor demand be different? Explain briefly. d. Lily and Kevin are interested in getting jobs at Pedro's smoothie shop. Kevin gets a higher marginal benefit from leisure than Lily. Sketch two labor supply curves, one for Kevin and one for Lily, and label your axes. e. Pedro allows employees to drink free smoothies when they are working. After working for Pedro for a week, Lily discovers that smoothies are her favorite drink. She likes them so much that she even buys them regularly when she isn't working. How might Lily's labor supply curve be affected by this change in her preferences? Illustrate your answer on the graph from part (d) and provide a brief explanation