There are four consumers willing to pay (WTP) the following amounts for haircuts: Gloria: $35 Jack: $10 Claire: $40 Phil: $25 There are four haircutting businesses that have the capacity to produce only one haircut with the following costs: Firm A: $15 Firm B: $30 Firm C: $20 Firm D: $ 10 Price 50 88888 40 30 20 10 0 1 2 3 1) To achieve efficiency, how many haircuts should be given? 2) Which business should cut hair and which consumers should have their hair cut? A, C, & D Phil, Gloria and Claire 3) What is the largest consumer surplus that Claire could earn in this market?

There are four consumers willing to pay (WTP) the following amounts for haircuts: Gloria: $35 Jack: $10 Claire: $40 Phil: $25 There are four haircutting businesses that have the capacity to produce only one haircut with the following costs: Firm A: $15 Firm B: $30 Firm C: $20 Firm D: $ 10 Price 50 88888 40 30 20 10 0 1 2 3 1) To achieve efficiency, how many haircuts should be given? 2) Which business should cut hair and which consumers should have their hair cut? A, C, & D Phil, Gloria and Claire 3) What is the largest consumer surplus that Claire could earn in this market?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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