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 Hilary: $35 Maria: $15 Edison: $45 Kevin: $25 Firms' Costs Firm A: $40 Firm B: $20 Firm C: $10 Firm D: $30 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. Edison Hilary Kevin Maria 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 Hilary: $35 Maria: $15 Edison: $45 Kevin: $25 Firms' Costs Firm A: $40 Firm B: $20 Firm C: $10 Firm D: $30 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. Edison Hilary Kevin Maria 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' |
|
| Hilary: | $35 |
| Maria: | $15 |
| Edison: | $45 |
| Kevin: | $25 |
| Firms' Costs | |
| Firm A: | $40 |
| Firm B: | $20 |
| Firm C: | $10 |
| Firm D: | $30 |
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.
Edison
Hilary
Kevin
Maria
The maximum possible total surplus is
.
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