There are four consumers willing to pay the following amounts for haircuts: A: $7 B: $2 C: $8 and D: $5 There are four haircutting businesses with the following costs; Firm 1: $3 Firm 2: $6 Firm 3: $4 and Firm 4: $2 Each firm has the capacity to produce only one haircut. For efficiency how many haircuts can be given? Also find out how large will be the total surplus.

There are four consumers willing to pay the following amounts for haircuts: A: $7 B: $2 C: $8 and D: $5 There are four haircutting businesses with the following costs; Firm 1: $3 Firm 2: $6 Firm 3: $4 and Firm 4: $2 Each firm has the capacity to produce only one haircut. For efficiency how many haircuts can be given? Also find out how large will be the total surplus.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 8PA

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