There are four consumers willing to pay the following amounts for haircuts: Gloria: $35 Jay: $10 Claire: $40 Phil: $25 There are four haircutting businesses with the following costs: Firm A: $15 $10 Firm B: $30 Firm C: $20 Firm D: Each firm has the capacity to produce only one haircut

Economics Oct 20, 2020

There are four consumers willing to pay the following amounts for haircuts: Gloria: $35 Jay: $10 Claire: $40 Phil: $25
There are four haircutting businesses with the following costs:
Firm A: $15 $10
Firm B: $30 Firm C: $20 Firm D:
Each firm has the capacity to produce only 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?

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