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Explain why the following statement is false: -- If John values having his hair cut at $20 and Mary's cost for providing the hair cut
Explain why the following statement is false:
-- If John values having his hair cut at $20 and Mary's cost for providing the hair cut is $10, any tax on hair cuts larger than $10 will eliminate the gains from trade and cause a $20 loss of total surplus.
Thank you so much in advance!!
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