8. Four consumers are willing to pay these amounts for haircuts: Gloria: $35 Jay: $10 Claire: $40 | Phil: $25 Four haircutting businesses have these costs: Firm A: $15 Firm B: $30 Firm C: $20 Firm D: $10 Each firm can give, at most, one haircut. To achieve efficiency, how many haircuts should be given? Which businesses should cut hair and which consumers should have their hair cut? How large is the maximum possible total surplus? Please graph supply-and-demand curve to complement your answers.

8. Four consumers are willing to pay these amounts for haircuts: Gloria: $35 Jay: $10 Claire: $40 | Phil: $25 Four haircutting businesses have these costs: Firm A: $15 Firm B: $30 Firm C: $20 Firm D: $10 Each firm can give, at most, one haircut. To achieve efficiency, how many haircuts should be given? Which businesses should cut hair and which consumers should have their hair cut? How large is the maximum possible total surplus? Please graph supply-and-demand curve to complement your answers.

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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