14. Problems and Applications 08 There are four consumers willing to pay the fol

Question

14. Problems and Applications 08 There are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the following costs Consumers' Willingness to Pay Firms' Costs Gloria: $35 ay: $10 Claire: $40 Phil: $25 Firm A: $15 Firm B: $30 Firm C: $20 Firm D: $10 Each firm has the capacity to produce only one haircut. For efficiencyshould be given. Which businesses should cut hair? Check all that apply. Firm A Firm B Firm C Firm D Which consumers should have their hair cut? Check all that apply. Claire Gloria

Explanation / Answer

For efficiency: discounts must be given

Firm C must cut hair as the prices charged by the firm is completely half than the price that the consumer is ready to pay. that is the consumer is ready to pay a double price for the haircut, this shows the efficiency in the work of the business holder.

Clair must go for a haircut where looking at the efficiency of the business she is ready to pay a double price but the firm is charging a complete half of her expectation.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.