
Essentials of Economics 7th Edition by Gregory Mankiw
Edition 7ISBN: 978-1285165950
Essentials of Economics 7th Edition by Gregory Mankiw
Edition 7ISBN: 978-1285165950 Exercise 10
There are four consumers willing to pay the following
There are four haircutting businesses with the following costs:
Each firm has the capacity to produce only one haircut. For 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?

There are four haircutting businesses with the following costs:

Each firm has the capacity to produce only one haircut. For 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?
Explanation
Efficient allocation:
Allocation of pro...
Essentials of Economics 7th Edition by Gregory Mankiw
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