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There are four consumers willing to pay the following amounts for haircuts: A: $7 B: $2 C: $8 and D: $5 There are four haircutting
There are four consumers willing to pay the following amounts for haircuts: A: $7 B: $2 C: $8 and D: $5 There are four haircutting businesses with the following costs; Firm 1: $3 Firm 2: $6 Firm 3: $4 and Firm 4: $2 Each firm has the capacity to produce only one haircut. For efficiency how many haircuts can be given? Also find out how large will be the total surplus.
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