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 Eric: $35 Bob: $50 Cho: $40 Ginny: $25 Firms' Costs Firm A: $25 Firm B: $40 Firm C: $30 Firm D: $45 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. Bob Cho Eric Ginny The maximum possible total surplus is
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 Eric: $35 Bob: $50 Cho: $40 Ginny: $25 Firms' Costs Firm A: $25 Firm B: $40 Firm C: $30 Firm D: $45 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. Bob Cho Eric Ginny The maximum possible total surplus is
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 | |
| Eric: | $35 |
| Bob: | $50 |
| Cho: | $40 |
| Ginny: | $25 |
| Firms' Costs | |
| Firm A: | $25 |
| Firm B: | $40 |
| Firm C: | $30 |
| Firm D: | $45 |
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.
Bob
Cho
Eric
Ginny
The maximum possible total surplus is
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