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There are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the following costs: Consumers'

There are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the following costs: Consumers'

Essentials of Economics (MindTap Course List)
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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There are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the following costs:

Consumers' Willingness to Pay


Paolo: $40
Van: $25
Amy: $10
Sharon: $35

Firms' Costs
Firm A: $15
Firm B: $30
Firm C: $20
Firm D: $10

Each firm has the capacity to produce only one haircut.
For efficiency, should be given.
Which businesses should cut hair? Check all that apply.

Firm A
Firm B
Firm C
Firm D

Which consumers should have their hair cut? Check all that apply.

Amy
Paolo
Sharon
Van

The maximum possible total surplus is $

There are four consumers willing to pay the follwing amounts for haircuts, and there are four haircutting businesses with the following costs: Consumers' Willingness to Pay Firms' Costs Paolo: 140 Firm A: s15 Van: s25 Firm B: s30 Amy: S10 Firm C: s20 Sharon: $35 Firm D: 510 Each firm has the capacity to produce only one haircut. For efficiency. should be given
Transcribed Image Text:There are four consumers willing to pay the follwing amounts for haircuts, and there are four haircutting businesses with the following costs: Consumers' Willingness to Pay Firms' Costs Paolo: 140 Firm A: s15 Van: s25 Firm B: s30 Amy: S10 Firm C: s20 Sharon: $35 Firm D: 510 Each firm has the capacity to produce only one haircut. For efficiency. should be given
Which businesses should cut hair? Check all that apply. O Pem A O Prm O Frm C O Frm D Which consumers should have their hair cut? Check all that apply. O Amy O Peolo O Sharon O van
Transcribed Image Text:Which businesses should cut hair? Check all that apply. O Pem A O Prm O Frm C O Frm D Which consumers should have their hair cut? Check all that apply. O Amy O Peolo O Sharon O van
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